Mortgage rates push through the bottom, Manhattan office space for the taking, CMBS prognosis for CRE in 2021, the FHFA extends moratoriums, and three stocks to consider today as safe-enough havens.
In Today's News
Mortgage Rates Reach Another Record Low
Freddie Mac (OTCMKTS: FMCC) reported today that the average rate for a 30-year fixed-rate mortgage has fallen to 2.71% -- another new low in the loan backer's 50 years of tracking.
Why it matters: Low rates are the fuel that feeds the housing market's fire, but Freddie Mac also observed today that low supply and escalating prices "has effectively put a limit on how much higher sales can increase."
Manhattan Office Rent Availability Highest Since 2003
Manhattan hasn't had this much available office space since 2003, according to a report by Colliers International (NASDAQ: CIGI). The availability rate rose to 13.5% in November, with more companies looking to sublease their offices.
Why it matters: This Bloomberg report says the downturn is hitting shares of real estate investment trusts (REITs) like SL Green (NYSE: SLG) and Vornado Realty Trust (NYSE: VNO), with the latter this week saying it's now cutting jobs and reducing compensation.
Trepp Predicts What's Coming in CMBS Delinquencies
The securitized mortgage analysis specialists look at lodging, retail, office, industrial, and multifamily in the months ahead, based on what they expect for the loans backing billions of dollars in enterprises.
Why it matters: Sector investors, including buyers of REITs and direct owners and partners, can find something to take away from this. Spoiler alert: Trepp's not high on hospitality.
Today on Millionacres
What Does the FHFA Moratorium Extension Mean for Residential Investors?
The national moratorium on evictions and foreclosures has been extended again, kicking the can down the road for what may be an inevitable reckoning for millions of homeowners. It could ramp up the pressure on a lot of landlords just hanging on, too.
Why it matters: Foreclosures aren't flooding onto the market and pulling down prices, and this forestalls that even longer. Small landlords might be more tempted to cash out now, though, especially if they have tenants who can't pay. And everything hangs on what happens with vaccines and the pandemic.
3 Best Real Estate Stocks to Buy in December
Millionacres' Reuben Gregg Brewer breaks down why these three dividend-payers deserve investor attention and dollars this month in a hot market that could turn cold again in the months ahead.
Why it matters: We can all use some guidance now and then, especially now.