June 13th, 2022
US inflation picked up
Mortgage 😨😱 🚀
First lets look at the purchasing power: back in December, around 30 million households could qualify for a $600k mortgage. Now, under 20 million households qualify.
Read at Fortune “ The swift jump in mortgage rates was both an economic shock to the housing market and a huge blow to home shoppers. If a borrower in June 2021 took out a $500,000 mortgage at a 3.1% fixed rate, they'd see a monthly principal and interest payment of $2,135. At a 5.85% rate, that monthly payment would be $2,950. That's a 38% higher monthly payment. Over the course of the 30-year loan, it's an additional $293,264 in total payments.”
Applications dropped!
The million-dollar question 💰 : Home price growth can continue?
According to research note from Freddie Mac, the 33% housing price increase nationally over the past two years were drive-by four keys:
record low mortgage rates in 2020 and 2021, and the race to beat future rate increases;
limited supply from underbuilding and below average distressed sales;
an increase in first-time homebuyers due to favorable age demographics; and
increased migration from high-cost cities to areas that already had a housing shortage.
Well🔎 , the drivers still have strong signals in South Florid. Read the research
Just in from Realtor.com: 2022 Housing Market Forecast Midyear Update: More Options for Home Shoppers
Economic Calendar 👀
What’s driving mortgage rates the week of June 13-17: Wednesday, when the central bank’s Federal Open Market Committee wraps up a June meeting that’s widely expected to bring another rate hike.
Always good to remember :
The Fed doesn’t directly dictate mortgage rates, and the calculus behind how much you pay for a home loan is complicated, but here’s one easy rule of thumb: The 30-year fixed-rate mortgage closely tracks the 10-year Treasury yield. When that rate goes up, the popular 30-year fixed-rate mortgage tends to do the same.
Rates for fixed mortgages are also influenced by other factors, such as supply and demand. When mortgage lenders have too much business, they raise rates to decrease demand. When business is light, they tend to cut rates to attract more customers.
Rates ultimately are set by the investors who buy your loan. Most U.S. mortgages are packaged as securities and resold to investors. Your lender offers you an interest rate that investors on the secondary market are willing to pay.
U.S. 10 Year Treasury Note - Last Updated: Jun 13, 2022 10:56 a.m. EDT - 3.295 % - ↑ 0.132
BTR - Build-to-rent
Close to 5 percent of all the single-family houses that developers started to build in 2022 are planned to be operated as rental houses. Read more
2022 Florida MICHELIN Bib Gourmands****
29 Bib Gourmands join the inaugural MICHELIN Guide Miami, Orlando and Tampa, from a Thai kitchen in Miami's Little Havana to a Winter Park gastropub
Check the Miami winners:
The Ten most expensive US zip codes in 2021
Here are the top 10 most expensive U.S. ZIP codes, ranked by median home sale price.
10. Medina, Washington (98039)**
Median home sale price in 2021: $4,000,000
9. Los Altos, California (94022)**
Median home sale price in 2021: $4,052,000
8. Santa Monica, California (90402)**
Median home sale price in 2021: $4,058,000
7. Santa Barbara, California (93108)**
Median home sale price in 2021: $4,103,000
6. Beverly Hills, California (90210)**
Median home sale price in 2021: $4,125,000
5. Miami Beach, Florida (33109)**
Median home sale price in 2021: $4,475,000
4. Ross, California (94957)**
Median home sale price in 2021: $4,583,000
3. Sagaponack, New York (11962)**
Median home sale price in 2021: $5,000,000
2. Boston, Massachusetts (02199)**
Median home sale price in 2021: $5,500,000
1. Atherton, California (94027)**
Median home sale price in 2021: $7,475,000
YotelPad Miami owners discover they can’t rent their units out daily as promised
Owners at YotelPad, a 31-story building at 227 Northeast Second Street, can currently only rent their units out for a period of more than 30 days because the building has residential certificates of occupancy and use, as opposed to apartment hotel/condo hotel certificates of occupancy and use. In a letter sent to owners.
👉 Ask your agent to request the certificates before you sign the contract.
Metaverse
Have a few thousand dollars to burn on digital land? Here's how you can do it.
New Development
Contractors have completed foundation pours for four more downtown Miami towers in recent days, paving the way for vertical construction to begin.
Three of the pours took place at Miami Worldcenter, while the fourth was in Brickell. They include:
Legacy Miami Worldcenter – planned to top off at 55 stories, 691 feet. It will include 310 condos, 210 hotel rooms, and a 10-story health center
Miami World Tower – planned to top off at 53 stories, 579 feet. It will include 565 apartments
Caoba Miami Worldcenter’s second phase (Block G Phase 2) – planned to top off at 40 stories, 413 feet. It will include 411 apartments
Miami River Phase 1 – planned to top off at 54 stories, 640 feet. It will include 640 apartments
Source: The Next Miami