Archive: May 2014

Rent on the rise

Demand for rental housing still high
In the Bronx in New York City, the average monthly rent of $1,800 eats up 66 percent of income.

One in three Americans are spending too much on rent

In many of the nation’s housing markets, the rent has gotten too damn high. One out of three Americans now live in a housing market where rent for a three-bedroom home eats up more than 30% of the monthly median income, the traditional threshold for affordability, according to RealtyTrac. And in some cities, residents are doling out a much larger percentage of their paychecks.

Mortgage rates stay low

Demand for rental housing still high
In the Bronx in New York City, the average monthly rent of $1,800 eats up 66 percent of income.

Mortgage rates defy forecasts

As 2014 arrived, experts were confident that the 30-year mortgage rate would rise to at least 5% this year as the Federal Reserve cut back a bond-buying program, which had depressed the rates to unheard-of lows in 2013. So much for the experts. The Fed has reduced purchases to $20 billion a month in mortgage bonds, down from $40 billion when the program began in September 2012. Yet lenders this week were offering 30-year fixed home loans at an average of 4.2%, the lowest rate in six months, according to home finance giant Freddie Mac.