CFPB doubles down against marketing services agreements

CFPB doubles down against marketing services agreements

Underscores that MSAs could constitute mortgage kickbacks

Did Sen. Corker violate SEC rules, Senate ethics by telling investors to short GSEs?

Made questionable remarks on CNBC regarding stocks

House passes bipartisan TRID grace period bill 303-121

Next comes Senate, then looming threat of veto from White House
The Ticker

Rents up 15% while incomes up 0%

The growth of rental demand as homeownership rates hit historic, near 40-year lows may in part be because of Millennials who want to stay mobile, but it’s also driven by would-be homebuyers who are getting shut out by tight mortgage-lending standards.

"If you can't get into a single-family house and you can't get a mortgage, well, you don't need a mortgage to get an apartment," said Stephanie Karol, an economist at IHS.

Undeniably, household incomes have been stagnant since the 1970s, and especially since 1990.  Median household income was $50,017 in 2012, below 2007's peak level of $55,627, after adjusting for inflation, according to U.S. Census Bureau data.

Click on the graph to enlarge.

As Tyler at ZeroHedge puts it, there is one big beneficiary of all this.

And since the demand for rental properties will only go up as even parent basements are getting full, it means the already record high rent prices will duly follow, taking even bigger chunks out of US disposable income, and thus, that part of the US economy, some 70% of it, which depends on consumer spending. The beneficiary? The personal bank accounts of owners of rental properties... such as BlackStone - America's largest landlord.

Sure enough, as WSJ confirms, "apartment landlords continued to push through hefty rent hikes in the second quarter, squeezing U.S. households that already are struggling financially after four years of steady increases."

Source: ZeroHedge
Read full story
Comments powered by Disqus