Items Tagged with 'Capital Economics'


  • NerdWallet: Decline in housing affordability is keeping Americans out of their desired markets

    Survey claims that 45% of Americans can't afford to live in the housing market they want
    As housing affordability becomes a top concern for homeowners across the country, a new report from NerdWallet indicates many are refraining from moving in order to evade relocation costs. According to the company’s data, about six in 10 renters not living in their ideal location would rather give up the opportunity to own a home than move to a less desired location.
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  • Mortgage borrowers will be just fine when the economy slows

    Capital Economics says lenders can expect a nominal rise in delinquencies
    An economic slowdown has been widely forecasted, and this brings into question its inevitable impact on the housing market. But while a slowing economy typically causes a rise in mortgage delinquencies, Capital Economics predicts the impact will be minimal, as most borrowers should have no problem keeping up with their mortgage payments.
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  • Rental vacancies fall to historic low as home sales slow

    Despite the demand, Capital Economics predicts slowdown in multifamily development
    According to a recent report from Capital Economics, the slowdown in home sales is feeding the rental demand. The amount of rental households nationwide rose to 600,000 in the second quarter of 2019, according to the Census Bureau, and accounted for the largest gain in three years. Even with the increase, rental vacancies have stayed low, Capital Economics reports. 
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  • Lack of housing inventory is weighing down the market

    Single-family home sales disappoint
    Mortgage applications are up, but home sales are down, and lower rates don’t seem to be making an impact. What gives? Blame a lack of housing supply, according to a recent report from Capital Economics, which noted that “qualifying for a mortgage is of little help if you can’t find a home to buy.”
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  • Here's why a cut in FHA's insurance premiums won't boost its market share

    Capital Economics calls the step "too small to halt the downward trend"
    Earlier this month, the U.S. House of Representatives passed a bill that slashed the cost of upfront mortgage insurance for first-time homebuyers who underwent counseling before taking an FHA loan. But while the push for greater financial literacy is a worthy cause, it’s unlikely to boost FHA’s share of the mortgage market, Capital Economics said in a recent report, calling the premium cuts “too small to halt the downward trend in the FHA market share.”
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  • Here's why falling mortgage rates won't spark recovery in the housing market

    Capital Economics predicts muted activity as economic concerns loom
    The housing market won’t recover much in the second half of 2019, says Capital Economics. Mortgage interest rates have fallen this year, but that hasn’t spurred much action in the housing market, and things are unlikely to turn around for the remainder of the year as concerns about the economy continue to grow, the economists say.
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  • What's behind the recent surge in rental growth?

    A new report from Capital Economics gives us an idea
    Is the recent surge in rental growth an indicator of tightening rental markets? According to a new report from Capital Economics, analysts are optimistic about the rental market's outlook but were surprised at the boost in growth. So, what's behind this acceleration and will it continue?
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  • Low mortgage rates won't heat up the housing market, analysts say

    Instead, the slowing economy will trample homebuyer confidence and home-price growth will fall
    Mortgage rates have dropped significantly as of late, but analysts at Capital Economics warn against getting too excited about the possibility that low rates will heat up the housing market. Why? Blame the slowing economy, which will take a bite out of homebuyer confidence. Read on to learn more about why analysts predict existing-home sales will simply "tread water" over the next year despite favorable rates.
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  • Capital Economics: Rental growth may see modest declines

    Latest report says rental growth will fall back as earnings cool down
    Economists at Capital Economics noted in their latest housing market report that they expect that the gradual loosening in market conditions to mean rental growth is set to cool down. "Our profile for rental and house price growth implies that gross rental yields will rise slowly over the next three years, from 6% today to around 6.3% by the middle of 2021," the firm writes.
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