Author: ipgocorp

NEW YORK, NY – At a seasonally adjusted annual rate of $636.7 billion, new construction starts in May increased 5% from April, according to Dodge Data & Analytics.  Much of the growth came from the nonbuilding construction sector (public works and electric utilities), which was lifted by a $3.8 billion oil pipeline in the upper Midwest as well as by seven power plant projects with a combined cost of $4.3 billion. Residential building edged up slightly in May, as multifamily housing bounced back from its subdued April performance.  However, nonresidential building in May retreated, sliding for the second month in a row after the elevated activity reported in March.  During the first five months of 2016, total construction starts on an unadjusted basis were $256.7 billion, down 12% from the same period a year ago.  Last year’s January-May period featured 12 exceptionally large projects valued each at $1 billion or more, including a $9.0 billion liquefied natural gas export terminal in Texas, an $8.5 billion petrochemical plant in Louisiana, the $2.5 billion 30 Hudson Yards office tower in New York NY, and the $2.3 billion Interstate 4 Ultimate Project in Orlando FL.  In contrast, the January-May period of 2016 included only four projects valued at $1 billion or more.  If these exceptionally large projects are excluded from the comparison, total construction starts during the first five months of 2016 would be down 0.3%, or essentially even, with last year.

The May statistics raised the Dodge Index to 135 (2000=100), up from 129 in April.  The Dodge Index had shown moderate improvement during February and March, averaging 141, before slipping back in April. “The construction start statistics have shown annual increases since 2010, including a 10% gain in 2015, although the month-to-month pattern has been frequently uneven,” stated Robert A. Murray, chief economist for Dodge Data & Analytics.  “This up-and-down behavior continues to be present in 2016, with May seeing a partial rebound after the setback in April.  In addition, the year-to-date comparisons in early 2016 relative to last year have been complicated by the fact that the first half of 2015 witnessed elevated levels arising from a number of exceptionally large projects (defined as projects valued at $1 billion or more).  There were considerably fewer such projects during the second half of 2015, and this lower base should enable the year-to-date comparisons to improve as 2016 proceeds.  The environment for construction still carries a number of positives – long term interest rates remain low, commercial development is being financed from multiple sources, construction bond measures are being passed at the state level, and the new multiyear federal transportation bill is in place. On the cautionary side, bank lending standards for commercial real estate loans began to tighten during the second half of 2015, and this trend has continued into 2016.”

Nonbuilding construction in May jumped 24% to $193.0 billion (annual rate).  The public works categories as a group increased 15%, helped especially by a 47% hike for miscellaneous public works, which includes such diverse project types as pipelines, rail and airport runway projects, and site work.  May’s data included the start of the Dakota Access Pipeline, with an estimated construction start cost of $3.8 billion, located in the states of North Dakota, South Dakota, Iowa, and Illinois.  This oil pipeline will connect the Bakken and Three Forks production areas in North Dakota to existing pipelines in Illinois.  The river/harbor development category in May climbed 81%, rebounding after a weak April.  Sewer construction in May advanced 42%, helped by the start of a $149 million sewage pumping station in Kailua HI and a $130 million sewage treatment plant upgrade in the Binghamton NY area.  Water supply construction was the one environmental public works category that declined in May, falling 40%.  Highway and bridge construction edged up 1% in May, advancing for the second month in a row following the lackluster amount reported in March.  The electric power and gas plant portion of nonbuilding construction soared 57% in May.  There were four large natural gas-fired power plants included as construction starts, located in Pennsylvania ($1.2 billion), Ohio ($890 million), Florida ($750 million), and Texas ($575 million).  There were also three large wind farms that reached groundbreaking in May, located in Kansas (two projects valued at $400 million and $220 million, respectively), and North Dakota ($249 million).  Murray noted, “Last December Congress approved an extension to the wind-energy production tax credit through 2019, which is contributing to the healthy pace for new wind power projects so far in 2016.”

Residential building, at $272.5 billion (annual rate), improved 1% in May.  The multifamily side of the housing market provided the upward push, increasing 15%.  There were eight multifamily projects valued at $100 million or more that reached groundbreaking in May, compared to five such projects in April.  The May large projects were led by a $500 million apartment tower in Chicago IL, followed by a $453 million apartment tower in Jersey City NJ, and the $345 million apartment portion of a $500 million mixed-use high-rise in New York NY.  Through the first five months of 2016, New York NY continued to be the leading metropolitan area in terms of the dollar amount of multifamily starts, followed by Miami FL, Chicago IL, Boston MA, and Los Angeles CA.  Metropolitan areas ranked 6 through 10 during this period were San Francisco CA, Washington DC, Denver CO, Atlanta GA, and Dallas-Ft. Worth TX.  Of these ten metropolitan areas, eight showed double-digit gains compared to a year ago, while two showed declines – New York NY, down 16%; and Washington DC, down 25%. Single family housing in May slipped 4%, not yet able to re-establish an upward trend in a sustainable manner despite continued low mortgage rates.  By major region, single family housing in May showed this pattern compared to April – the Midwest, down 7%; the South Atlantic, down 6%; the West, down 4%; the South Central, no change, and the Northeast, up 3%.

Nonresidential building in May decreased 6% to $171.2 billion (annual rate), marking the second straight monthly decline after the heightened activity in March.  The commercial building categories as a group experienced a 9% shortfall in May.  Hotel construction, which had been particularly strong during the initial months of 2016, fell 22%.  Large projects that reached groundbreaking in May included the $97 million hotel portion of the $500 million mixed-use high-rise in New York NY and a $75 million Marriott hotel in Menlo Park CA.  While noteworthy projects by themselves, they were smaller in scale than the substantial hotel and casino projects that reached groundbreaking in February and March. Office construction in May dropped 11%, despite the start of a $191 million office building in Brooklyn NY, a $139 million renovation of a federal government office building in Washington DC, and a $95 million renovation of an office campus in Akron OH.  Both stores and warehouses stayed close to their April levels, posting small declines of 1% and 3% respectively.  The manufacturing plant category in May retreated 37%, following April’s 38% hike that included the $717 million expansion to an alpha olefins plant in Louisiana.

The institutional side of the nonresidential building market held steady in May.  The educational facilities category rose a moderate 4%, lifted by the start of a $111 million science and technology center at Chapman University in Orange CA, an $80 million renovation of a high school in Hartford CT, and a $77 million engineering building at San Diego State University in San Diego CA.  Healthcare facilities increased 7%, boosted by groundbreaking for a $230 million hospital in Baton Rouge LA and a $177 million hospital in Fulton MO.  Moderate growth was also reported for church construction, up 6%; and public buildings (courthouses and detention facilities), up 9%.  On the negative side, transportation terminal work slipped 9% in May, and amusement-related construction fell 13%.  Even with its May decline, the amusement category did include the start of the $129 million renovation of the Target Center Arena in Minneapolis MN and a $98 million “convening” center at Harvard Business School in Allston MA.

The 12% decline for total construction starts on an unadjusted basis during the first five months of 2016 was due to diminished activity for both nonbuilding construction and nonresidential building, compared to their brisk pace of a year ago.  Nonbuilding construction dropped 24% year-to-date, with public works down 13% and electric utilities/gas plants down 39%.  Nonresidential building fell 21% year-to-date, with commercial building down 7%, institutional building down 12%, and manufacturing building down 70%.  Residential building continues to be the one major sector that’s showing year-to-date growth, climbing 6% with single family housing up 9% and multifamily housing holding steady with the prior year.  By geography, total construction starts during the first five months of 2016 revealed a mixed pattern – the South Central, down 36%; the Northeast, down 8%; the West, down 2%; the South Atlantic, no change; and the Midwest, up 7%.

ATLANTA, GA – GoldOller Real Estate Investments announced its acquisition of Westhaven at Vinings Apartments in metropolitan Atlanta. This is GoldOller’s tenth apartment acquisition in the Atlanta area since 2012 and brings GoldOller’s Atlanta apartment portfolio to more than 3000 units.

Westhaven at Vinings is a gated 610 unit resort-style community nestled in the historic Vining’s district of Atlanta adjacent to Buckhead. Amenities include four swimming pools, an athletic club, outdoor kitchens amidst lush rolling landscape, stunning upgraded interiors, Wi-Fi business center cafe, treetop club house and resident lounge.

According to GoldOller Chairman, Richard Oller: “Westhaven at Vinings caters to discerning residents seeking luxury rental homes and a very active, carefree lifestyle in one of Atlanta’s best locations.  We are thrilled to include this exceptional property in our portfolio and especially excited to welcome the talented and enthusiastic Westhaven at Vinings site team to GoldOller.” 

Jill Hinton, GoldOller’ s VP of Operations, added that GoldOller will immediately introduce its signature GO LIFESTYLE services at the property, which includes complimentary fitness classes, health and nutrition programming and host of resident events. “Our primary objective is making sure our residents feel the love and enjoy every aspect of their magnificent homes while enjoying all of our amenities and sharing in an extraordinary community experience,” Hinton said.

Jake Hollinger, GoldOller partner and COO, said: “We have had great success in the Atlanta market.  Our residents continually reward us for the quality of our services and communities by choosing GoldOller when there are so many other options. Our Atlanta occupancy, cash flow and investment returns have been exceptional, and, as relative newcomers to the market we could not be more pleased. We are confident that the trend will continue with the addition of Westhaven at Vinings.”

Formed in 2008 by industry veterans Richard Oller and Jeffery Goldstein, GoldOller is an emerging leader in the multi-family housing industry and an innovative owner-operator of apartment communities throughout the United States. GoldOller owns and operates apartment communities in 17 States valued in excess of 1.5 billion dollars, containing about 14,000 units. 

JERSEY CITY, NJ – Roseland Residential Trust, a subsidiary of Mack-Cali Realty Corporation, marked the grand opening for M2 at Marbella, the newest luxury residential building located in downtown Jersey City. Jersey City Mayor Steven Fulop joined municipal and company officials to celebrate Roseland’s newest addition to the Jersey City market.

The 39-story luxury residential community, located at 401 Washington Boulevard, features 311 studios, one, two, and three-bedroom apartment homes, and joins Roseland’s existing Marbella community where residents will benefit from shared amenities, including a shared parking garage.

Fulop said the newest apartment community to open is yet another example of Jersey City’s emergence as a city where professionals come to enjoy a true live-work-play environment.

“Mack-Cali and its Roseland subsidiary have invested tremendous resources in both commercial and residential properties throughout Jersey City, including Mack-Cali’s own corporate headquarters, and we are grateful for that,” said Mayor Steven M. Fulop. “But more importantly, their investment in our neighborhoods and our communities speaks volumes about Mack-Cali’s faith that Jersey City can look forward to continued prosperity, continued development, and continued growth.”

As the newest addition to the Jersey City skyline, M2 at Marbella will provide residents with remarkable views of New York City and the Hudson Waterfront from the individual apartment homes as well as from the 800-square-foot rooftop terrace. The building features a wide variety of state-of-the-art amenities, including a 1,200-square-foot event room, as well as a sky lounge on the top floor of the building, a 1,700-square-foot club room with a lounge and billiard table, a conference room, two fitness centers with a yoga studio, a children’s playroom, an on-site concierge, an on-site dog run, and bike storage.

Andrew Marshall, president and chief operating officer of Roseland Residential Trust, shared his excitement for the addition of M2 to the luxury multi-family rental market in Jersey City.

“We are thrilled to have M2 at Marbella open its doors and add to Jersey City’s flourishing community,” said Marshall. “The community offers residents unrivaled views of New York City’s iconic skyline as well as proximity to numerous transit options. The host of amenities offered will provide enjoyment for every resident throughout the year.”

M2 is connected to Roseland’s existing residential community, Marbella, by a 16,000-square-foot landscaped roof deck with a pool, which will be accessible to residents of both luxury residential communities. In addition to the pool, the deck will provide residents with a variety of outdoor amenities to enjoy throughout the year, including a fireplace, fire pit, and outdoor grilling stations.

M2 is ideal for commuters due to its close proximity to various mass transportation services. The Hudson-Bergen Light Rail is located on-site and provides commuters with access to Hoboken and Bayonne. Additionally, a NJ TRANSIT bus stop is directly across the street from the new residential community and the Newport PATH station, which provides commuters with train service to Manhattan and is less than ¼ mile north of the property. Convenient highway access from M2 is available to residents, and Newark Liberty International Airport is located approximately 10 miles away. Additionally, a wide variety of recreational activities, dining options, and shops, including the Newport Centre Mall, are all located within walking distance of M2, making this one of the most walkable neighborhoods in Jersey City.  

PHOENIX, AZ – Sunrise Management has begun the nearly $1 million renovation of Park Tower, a 180-unit multifamily property recently acquired by Phoenix- based 29th Street Capital for $21.65 million.

Sunrise – a San Diego-based firm that has specialized in the management of residential real estate since 1978 – will assume day-to-day management of the 10.73 acre property, as well as oversee the comprehensive renovation, which will include extensive interior and exterior upgrades. Located in a suburb of Phoenix, the property is at 1283 W. Parklane Blvd in Chandler, Ariz.

According to Kevin Pennel, regional vice president for Sunrise Management, improvements will include a new dog park, upgraded patios and exterior paint, as well as new cabinet faces, kitchen appliances and hardware, resurfaced counters, new flooring, lighting and fresh paint in all units – encompassing one and two bedroom apartments ranging from 700 to 1,000 square feet.

Fully amenitized, the community features a play area, clubhouse, covered parking, picnic/bbq area, swimming pool and hot tub, tennis courts and fitness center.

Sunrise currently manages 4,541 units in the Phoenix area, with properties in Phoenix, Mesa, Tempe and Scottsdale.

Founded in 1978, Sunrise Management is a privately owned San Diego-based firm specializing in the management of residential real estate properties. The firm currently has regional offices in Sacramento, Las Vegas and Phoenix, overseeing more than 13,000 multifamily units throughout California and the Southwest.

WORCESTER, MA – Roseland Residential Trust, a wholly owned subsidiary of Mack-Cali Realty Corporation, held a groundbreaking ceremony with public officials for 145 Front Street at City Square in Worcester, Massachusetts. This project is the first of two phases, when complete it will be comprised of 365 apartment homes, phase one includes 237-apartment homes. It is a key component of the master-planned, mixed-use development that is revitalizing the city’s downtown. Roseland anticipates a third quarter 2017 completion of this community.

The luxury residential community will be a draw for the many young professionals flocking to the revitalized Worcester, New England’s second largest city. The property will feature studio, one-, and two-bedroom units, with a wide range of state-of-the-art amenities, including a stunning outdoor swimming pool with a sundeck, a courtyard with fire pit, barbecue grills, a dog run, and more. The building will also have a full-time concierge, a fitness center with on-demand yoga and spinning services, and a clubroom with billiards, computers, a lounge area, and a game room. Additionally, there will be 10,000 square feet of retail space at 145 Front Street.

The full mixed-use project includes a new hotel, public parking garage, and significant additional retail space. Downtown Worcester is ideally located steps from the Worcester Common and the new transportation hub at Worcester’s Union Station offering multiple transport options, including Massachusetts Bay Transportation Authority (MBTA) trains, Amtrak, and bus service. The MBTA offers service to Boston’s South Station in approximately 90 minutes.

“Creating a vibrant downtown residential community gives our growing workforce the high-quality homes they need, and today marks a major milestone in Worcester’s continuing renaissance,” said Worcester Mayor Joseph M. Petty. “Downtown’s transformation is made possible by partners like Roseland who are committed to making projects like this one a reality, and we look forward to continuing to work together for years to come.”

“This development brings a new dimension in luxury living to the rapidly growing downtown Worcester area – an unrivaled set of amenities, convenience, and a high-end lifestyle,” said Andrew Marshall, president and chief operating officer of Roseland Residential Trust. “This property and the entire development will make Worcester the quintessential urban live-work-play environment, and we are thrilled to be a part of it.”

This property is expected to be especially attractive to Worcester’s growing workforce in advanced manufacturing, information technology, biotechnology, and healthcare. There are a number of significant private and public sector employers in Worcester, including St. Vincent Hospital, UMass Memorial Medical Center, and the Massachusetts College of Pharmacy and Health Sciences. The area is home to 12 colleges and universities with more than 35,000 students.

“The momentum of Downtown Worcester is plain to see, and the addition of Roseland’s high-quality, market rate housing will only build on that energy,” said City Manager Edward M. Augustus, Jr. “This is a great example of smart growth, bringing hundreds of people downtown to live near our intermodal transit hub, where they can take a bus across the city or an express train into Boston. As we continue to build density and downtown increasingly becomes a genuine neighborhood, I see even more great things on the horizon.”

Roseland’s focus on developing in downtown areas is readily apparent elsewhere in Massachusetts as well. The company is building Portside at East Pier in East Boston where it is redeveloping a stretch of waterfront property on Boston Harbor. Portside at East Pier is comprised of 181 apartment homes that are fully occupied, 296 that are currently under construction, and an additional future phase which will likely include a mix of apartment homes, condos, a hotel, and multiple public amenities. Roseland is also constructing The Chase II at Overlook Ridge five miles north of Boston. Chase II is a 292-apartment home community and part of a master-planned community, currently comprised of 1,400 apartment homes, and approved for a total of approximately 2,800 apartment homes.

SHEPHERDSTOWN, VA – EdR, one of the nation’s largest developers, owners and managers of high-quality collegiate housing communities, celebrated the commencement of construction on a residence hall at Shepherd University in Shepherdstown, W.Va. with a groundbreaking ceremony.

As previously announced, EdR was selected and hired by the Shepherd University Foundation Supporting Organization (SUFSO) to oversee all the aspects of this third-party development including financing, design and construction.   Raymond James Financial, Inc. assisted EdR and the Shepherd University Foundation with the funding for this $22 million project.   

There will be a mix of single and double suite-style units for a total of 298 beds in the new five-story residence hall.   Amenities will include a food service and dining area, classroom, student lounges and study rooms along with robust internet and Wi-Fi capabilities throughout the community. Upon completion in summer 2017, the SUFSO will own the building and the university will provide management services.

At the groundbreaking celebration, assembled students and faculty were able to hear from university administrators about the development and get their first glimpse of renderings, which were met with great excitement.

“This residence hall is a noteworthy example of Shepherd’s commitment to strategically navigate with a purpose,” said Shepherd University president Mary J.C. Hendrix. “This new addition will inspire student development, beautify the campus and stimulate the economy in Shepherdstown and the entire region, which are all pathways we are following to advance our premiere liberal arts university.”

President Hendrix invited EdR president Tom Trubiana, Chancellor Paul Hill, Shepherd Board of Governors chair Dr. Marcia Brand, Shepherd vice president for administration James Vigil, SUFSO board member Tim McShea and other executives to join her in the footprint of this planned community to turn over the first shovels of dirt on the project.

“EdR is honored to be selected to work with Shepherd University on this on-campus community,” said Tom Trubiana, EdR president. “High quality residential experiences not only improve the lives of students, but also help the university attract and retain top-caliber students.”

NEW YORK, NY – The Orbach Group announced the launch of its new subsidiary, Orbach Affordable Housing Solutions, committed to the investment in and preservation of affordable residential units in New York City and across the country. The new subsidiary has $150 million of new acquisitions in the pipeline to expand its existing affordable portfolio. For each property acquired, Orbach Affordable Housing Solutions plans to sign the maximum allowable Section-8/HAP or other applicable government extensions to ensure the buildings remain affordable. Orbach Affordable Housing Solutions will be led by Jay Reinhard, an industry expert with nearly two decades of experience, including 12 years as a Vice President at Related Companies.

“Our commitment to ensuring high-quality housing for New Yorkers of all income levels is unwavering,” said Meyer Orbach, Chairman of the Orbach Group. “Today’s announcement signifies both an expansion of our affordable housing portfolio, as well as a pledge to continue preserving the affordability of these units for generations to come.”

“Working in affordable housing for nearly two decades has been a tremendously rewarding experience,” said Jay Reinhard, President of Orbach Affordable Housing Solutions. “Rehabilitating buildings, making them current, working to make sure that everybody has a nice place to live is my life’s passion – and I am thrilled to take the next step in my career with Orbach Affordable Housing Solutions.”

This new subsidiary, Orbach Affordable Housing Solutions, will have more than 2,000 affordable units, and an approximate portfolio value of $400 million. The Orbach Group’s other properties – including more than 4,000 additional multifamily units – will continue to be managed by the parent company. Most of these properties are located in New York City, though others are located in New Jersey, Pennsylvania, and California. The Orbach Group, and now Orbach Affordable Housing Solutions, has a long history of renewing Section-8/HAP contracts to preserve housing for people of all income levels.

Prior to joining the Orbach Affordable Housing Solutions, Reinhard served as the President of the Affordable Housing Group at Cammebys International. During his time at Cammebys and Related, Reinhard completed roughly $1.5 billion in acquisitions, dispositions, and refinancing of affordable housing properties. He earned a dual degree in accounting and finance from the NYU Stern School of Business. He was born in Brooklyn.

ORLANDO, FL – Florida’s housing market reported higher median prices, more closed sales, increased new listings and fewer days to a contract in May, according to the latest housing data released by Florida Realtors. Closed sales of single-family homes statewide totaled 25,518 last month, up 4.5 percent over the May 2015 figure.

“Florida’s housing market is growing at a more moderate pace,” said 2016 Florida Realtors President Matey H. Veissi, broker and co-owner of Veissi & Associates in Miami. “New listings for existing single-family homes rose 5.8 percent compared to a year ago, while new listings for townhouse-condo properties rose 4.3 percent. While tight housing supply is having an impact in many areas, still-low mortgage rates, increased jobs and economic growth will continue to boost housing demand.”

Meanwhile, sellers continued to get more of their original asking price at the closing table. Sellers of existing single-family homes in May received 96.2 percent (median percentage) of their original listing price, while those selling townhouse-condo properties received 94.6 percent (median percentage).

The statewide median sales price for single-family existing homes last month was $221,050, up 10.5 percent from the previous year, according to data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards/associations. The statewide median price for townhouse-condo properties in April was $165,000, up 4.4 percent over the year-ago figure.

In May, statewide median sales prices for both single-family homes and townhouse-condo properties rose year-over-year for the 54th month in a row, Veissi noted. The median is the midpoint; half the homes sold for more, half for less. 

According to the National Association of Realtors (NAR), the national median sales price for existing single-family homes in April 2016 was $233,700, up 6.2 percent from the previous year; the national median existing condo price was $223,300. In California, the statewide median sales price for single-family existing homes in April was $509,100; in Massachusetts, it was $350,000; in Maryland, it was $267,041; and in New York, it was $220,000.

Looking at Florida’s townhouse-condo market, statewide closed sales totaled 10,455 last month, up slightly (0.1 percent) compared to May 2015. Closed sales data reflected fewer short sales and cash-only sales in May: Short sales for townhouse-condo properties declined 40.4 percent while short sales for single-family homes dropped 37 percent. Closed sales may occur from 30 to 90-plus days after sales contracts are written.

“The renewed level of growth we’re seeing for sales of single-family homes statewide this month was largely due to the continued resurgence of local markets throughout North Florida and the I-4 corridor,” said Florida Realtors Chief Economist Brad O’Connor. “Many of these areas began their recoveries from the previous downturn later than most of the markets in the southern part of the state, so they only recently began hitting their stride.

“In addition, these markets are less reliant on international buyers, so they have not been negatively impacted by recent uncertainty in foreign real estate investment activity.”

Inventory was at a 4.4-months’ supply in May for single-family homes and at a 6.1-months’ supply for townhouse-condo properties, according to Florida Realtors.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.60 percent in May 2016, down from the 3.84 percent average recorded during the same month a year earlier.

NEW YORK, NY – Mortgage rates rebounded modestly this week, with the benchmark 30-year fixed mortgage rate rising to 3.73 percent, according to Bankrate.com’s weekly national survey. The 30-year fixed mortgage has an average of 0.19 discount and origination points.

The larger jumbo 30-year fixed erased last week’s move, returning to 3.71 percent, and the average 15-year fixed mortgage rate bumped up to 2.97 percent mark. Adjustable mortgage rates were mostly higher, with the 5-year ARM inching higher to 3.06 percent and the 10-year ARM climbing to 3.44 percent.

After falling for three weeks in a row, mortgage rates reversed course and posted modest increases as tensions in financial markets about the looming Brexit vote eased somewhat. Investors hate uncertainty and rates had been driven down as nervous investors clamored for the safety of U.S. government bonds. Mortgage rates are closely related to the yields on long-term Treasuries. But stock markets around the globe staged a relief rally this week as investors sense that the United Kingdom will remain in the European Union. If the vote goes the other way, expect a renewed bout of market volatility that would push mortgage rates back down.

At the current average 30-year fixed mortgage rate of 3.73 percent, the monthly payment for a $200,000 loan is $923.96. 

SURVEY RESULTS

30-year fixed: 3.73% — up from 3.69% last week (avg. points: 0.19)

15-year fixed: 2.97% — up from 2.94% last week (avg. points: 0.23)

5/1 ARM: 3.06% — up from 3.05% last week (avg. points: 0.24)

Bankrate’s national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in 10 top markets.

For a full analysis of this week’s move in mortgage rates, go to www.bankrate.com

The survey is complemented by Bankrate’s weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days. A little more than half – 55 percent – expect mortgage rates to remain more or less unchanged while 36 percent predict mortgage rates will keep rising over the next week. Just 9 percent believe mortgage rates will fall during the next seven days.

(RECAP: A popular narrative of the U.S. housing market has been that big city prices are locking out young buyers, feeding a cycle in which a growing number of people are forced to rent at ever higher rates as demand overwhelms supply. Throw in the fact that wages haven’t kept pace, and you have a wide swath of Americans who can’t save enough to ever buy that first home. The reality may be a bit more complicated. t’s true that, when combined with a lack of government support for affordable housing, this situation has pushed the number of cash-poor renters to a new high. On the other hand, the number of homeowners severely cost-burdened or moderately cost-burdened actually fell from 2013 to 2014. And while the poorest renters are more likely to find themselves in dire straits, data suggests market-rate renters are keeping up with rising rents, and are thus able to put some money away for that eventual first purchase.)