Biden takes office with an eye on eviction ban extension, first-quarter stimulus lift seen, rates edge up and mortgage apps slip, FHFA moratorium, and tax impacts by state.
In Today's News
President Joe Biden Expected to Extend Federal Evictions Ban
Among executive orders the new president of the United States is expected to sign today is an extension of the federal evictions ban through March 2021, and he's expected to ask Congress to keep it in place through September.
Why it matters: CNBC reports an estimated 14 million Americans are behind on their rent. Helping them keep paid up is good for them -- and their landlords. The pandemic is affecting everyone.
Marcus & Millichap Sees First Quarter Lift from Stimulus Package
With $25 billion in rental assistance, the Paycheck Protection Program, and support for airlines, movie theaters, and live venues among its provisions, the much-delayed new COVID-19 relief package broadly supports commercial real estate, Marcus & Millichap (NYSE: MMI) says in a report quoted today on Connect Commercial Real Estate.
Why it matters: The package would have sweeping effects but has to make its way through Congress. However, that seems far more likely now with Democrats controlling both chambers and the White House.
MBA: Mortgage Applications Fall as Rates Rise
Mortgage applications decreased 1.9% from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending Jan. 15.
Why it matters: The average 30-year fixed mortgage rate rose to 2.92%, its highest since November, and that's beginning to chip away at demand, the MBA says. Only time will tell if rates rise enough to seriously dampen a hot residential real estate market in most areas.
Today on Millionacres
FHFA Extending Foreclosure, Eviction Moratoriums: What It Means for Investors
The Federal Housing Finance Agency (FHFA) has once again extended its foreclosure and eviction moratorium, this time until Feb. 28. The agency had previously extended the measures until Jan. 31 back in December.
Why it matters: Millionacres' Aly Yale notes that with the COVID-19 pandemic still raging, the government is working hard to provide consumer-side relief -- particularly surrounding housing costs. Naturally, if you're a property investor, this will continue to impact your bottom line until the health crisis dissipates.
State and Local Taxes Vary Widely: What RE Investors Should Know
Taxes are taxing everywhere, and real estate investors -- and everyone else -- face the same requirements when it comes to the Feds. But there's a big difference, depending on which state and city you're in.
Why it matters: New York has the highest and Alaska has the lowest as a percentage of income, and this report provides a solid basis for your assessment of the tax impact in each of these states -- and everywhere in between.