- Rising mortgage rates are pushing down Freddie Mac 's (OTCQB:FMCC) Multifamily Apartment Investment Market Index across most markets in Q2 2018 and over the past year.
- The analytical tool combines multifamily rental income growth, property price growth, and mortgage rates to provide a single index that measures multifamily market investment conditions.
- At the national level the AIMI fell 2.6% in Q2; 12 out of 13 local markets tracked by the index also slipped, with the largest declines in Phoenix (-4.77%), Houston (-3.79%), and Atlanta (-3.36%). Only Boston(+0.39%) experienced an increase.
- The biggest factor was a 29 basis point increase in mortgage rates during the quarter. Net operating income, though, grew in every market and the nation. Seattle saw the biggest quarterly increase, up 4.6%.
- For the past 12 months, the national AIMI declined 7.1% with declines in every local market it tracks.
- Previously: U.S. mortgage rates jump to highest level in more than 7 years (Oct. 11)
- Apartment REITs: APTS, EQR, IRT, AVB, BRG
- Mortgage ETFs: MORL, REM, MORT
- Now read: Become A 'Passive' Dividend Investor, 7.1% Yield With This REIT For The Long Run
Original article