By Mike Buish – Vestpro Residential Services
If you own one or more rental properties for Rent in Houston you have most likely noticed that this Real Estate market is different than other Real Estate markets in the past.
What’s different in the Real Estate market now compared to previous markets?
The main thing that’s different about this current Real Estate market compared to others is that that current housing boom is considered to be far less precarious than other markets and recoveries because, after the recent collapse of the housing market in 2006 many mortgage lenders have tightened up their lending requirements and standards so it’s more difficult for people to get a mortgage loan now than before especially if they can’t prove their income and that they have the ability to repay their mortgage loans.
Is Now A Great Time To Buy A Rental Property?
Yes, now is a great time to buy a Rental Property and list it for Rent In Houston because we still are enjoying the lowest Mortgage Interest Rates that we’ve seen in years and the supply of rentals has still not been able to keep up with demand so now is a great time to buy rental properties and build rental income.
Save Time and Money with Property Management
Once you start adding more rental properties to your portfolio it’s time to save yourself time and money by investing in professional property management service before marketing your property for rent in Houston yourself.
Contact Vestpro Residential Services today by calling us at (832) 498-0016 or click here to connect with us online.
5 interest rate basics to know in advance of the Fed’s big move
The Federal Reserve could boost interest rates as early as this month, as has been discussed in a gazillion news articles. That move, when it comes, will affect almost everyone, in some way.
But a lot of the reporting and speculation about the Fed’s next move likely has gone over the heads of millions of Americans. If a sizable slice of the country has problems grasping the basics on interest rates — how compounding works, the link between rates and inflation, and so on — they might not understand what the next central bank action could mean.
Various surveys indicate that many Americans continue to struggle with financial literacy topics, including those related to interest rates. This hasn’t stopped millions of people from using credit cards, taking out student loans and buying homes and cars with borrowed money, though it does help to explain why some people face debt problems.
Source – Usatoday
Little movement in the bond market
Mortgage rates have tended to fade big moves in the bond market lately. When rates fall well below 1.9% on the ten-year bond, mortgage rates slightly fall. Similarly, when rates rise to 2.3%, mortgage rates tend to rise slightly.
Mortgage rates have largely ignored the moves in the bond markets lately. Last week, ended December 4, they fell by four basis points while the ten-year bond yield rose from 2.22% to 2.27%. Investors interested in making directional bets on interest rates can look at the iShares 20+ Year Treasury Bond ETF (TLT).
Effect on mortgage REITs
Mortgage bankers such as Nationstar Mortgage (NSM) and Wells Fargo (WFC) are looking forward to 2016 at this point. The Mortgage Bankers Association has put out initial estimates for 2016, and it’s predicting improvement in the purchase business, but a continuing fall in the refinance business, as rates rise.
The drop in prepayment speeds would be good news for mortgage REITs such as Annaly Capital Management (NLY) and American Capital Agency (AGNC) as they are highly-leveraged agency REITs with a lot of prepayment exposure. Non-agency REITs such as Redwood Trust (RWT) tend to swap interest rate risk for credit risk.
Investors interested in trading in the mortgage REIT sector through an ETF can look at the iShares Mortgage Real Estate Capped ETF (REM).
Source – marketrealist.com
Started by Mike and Kim Buish, Vestpro Residential Services is a property management company specializing in residential property management in the Houston area and surrounding cities.
Whether you are a property owner or a prospective tenant, Vestpro has the expertise to handle your property management needs.
Call us at (832) 498-0016 or click here to connect with us online