Rents are falling more slowly in U.S. suburbs than in cities.

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Estimated read time: 3 minutes 34 seconds.

Where is the fall housing market going per data link

• High mortgage rates, surpassing 7% last month, have significantly slowed the housing market. Buyers are hesitant due to affordability issues, and sellers are reluctant, leading to a severe shortage of available homes and subsequent price hikes.

• Mortgage rates averaged 7.12% for 30-year, fixed-rate loans as of Sept. 7, a sharp increase from 5.89% a year ago and 2.88% two years prior. Consequently, today's monthly mortgage payments are roughly 90% higher than two years ago.

• The U.S. Federal Reserve's efforts to reduce prices by increasing its short-term interest rates have inadvertently led to higher mortgage rates and home prices. The future trajectory of the Fed's rates and their impact on mortgage rates remains uncertain.

• Despite the challenges, there's a silver lining: new-home sales remain robust, and there's typically less competition for homes in the fall. Additionally, mortgage rates might decrease once the Fed concludes its primary inflation-combating initiative.

• The price gap between new and existing homes has diminished, with only a $30,000 difference noted in July. This shift makes new homes an attractive option for many buyers, especially given the limited availability of resale homes.

Home Sales Dip, but Home Prices Are Holding Steady for Now link

• Home sales are seeing a decline, but prices remain steady. Affordability challenges are pushing many out of the market, with no signs of prices plummeting.

• Inventory remains low, with a slight increase observed week over week towards the end of summer. Despite the dip in sales, there's no indication of a market crash.

• The median home price in the US stands at $444,990, a 0.7% decrease from the previous week but still 1% higher than the same time last year.

What's influencing the increase in REO acquisitions? link

• Bank repossessions rose by 9% in the first half of 2023 compared to the same period in 2022, influenced by the aftermath of pandemic-related foreclosure moratoriums and restrictions.

• Economic indicators suggest a continued rise in REO acquisitions due to factors like reduced household real income, record-high credit card debt surpassing $1 trillion, and auto loan defaults at a 15-year peak.

• The demand for REO assets remains robust, with third-party sales accounting for 40-70% of potential REO inventory, and properties that reach REO status are in high demand with low market days and multiple offers.

Skilled Nursing’s Positive Occupancy Trend Doused by Federal Staffing Mandates link

• Staffing shortages combined with federal and state-driven staffing mandates could hinder the rising occupancy rates observed in skilled nursing communities.

• Occupancy rates rose by 31 basis points from May to the end of June, reaching 81.2%.

• Positive occupancy momentum was observed throughout 2022, with an increase of 77 basis points since December 2022.

Rate lock volume plummets in least affordable housing market in 40 years link

• Rate lock volume decreased by 1.5% in August, marking the third month in a row of decline as mortgage rates reached their highest in over two decades.

• In the past three months, overall lock volumes have dropped by 9.5% and are now 55% lower than August 2022 figures.

• Despite the decline, there were minor increases in cash-out and rate/term refinance locks in August, with most activity seen among first-lien holders with older mortgages or particularly low balances.

Looking for Retail Rent Growth? Follow the People. link

• Sun Belt markets are experiencing significant retail rent gains due to stronger population growth.

• Population dynamics especially play a crucial role in determining retail rent trends across various markets more than in other asset classes.

• Retailers and investors should focus on areas with robust population growth for better rent growth opportunities.

CMBS Delinquency Rate Has Jumped 56 Percent Since January link

• The CRED iQ CMBS delinquency rate reached 5.07% in August 2023, marking a significant increase from earlier in the year.

• 62% of the newly delinquent loans faced maturity defaults or refinancing challenges, indicating underlying financial stress.

• Office sector distress surged in August, with the office distressed rate jumping to 9.36%, a 17% increase from the previous month.