Home Purchase Rates
PRODUCT +/- Rate Last week
30 year fixed Graph Icon Arrow 4.09% 4.16%
15 year fixed Graph Icon Arrow 3.25% 3.30%
5/1 ARM Graph Icon Arrow 3.28% 3.36%

 Rate disclaimer

PRODUCT +/- Rate Last week
30 year fixed refi Graph Icon Arrow 4.09% 4.17%
15 year fixed refi Graph Icon Arrow 3.25% 3.34%
10 year fixed refi Graph Icon Arrow 3.15% 3.18%
PRODUCT +/- Rate Last week
60 month used car loan Graph Icon Arrow 3.20% 3.20%
48 month used car loan Graph Icon Arrow 3.18% 3.19%
60 month new car loan Graph Icon Arrow 3.44% 3.44%
PRODUCT +/- Yield Last week
6 Month CD Graph Icon Arrow 0.75% 0.71%
1 Year CD Graph Icon Arrow 1.24% 1.24%
2 Year CD Graph Icon Arrow 1.41% 1.41%
MMA and SAVINGS 0.58%
$10k MMA 0.57%
Interest Checking 0.43%

Mortgage Brokers & Lenders Directory

You can search our directory or Mortage Brokers & Lenders and get a current quote on 30 year fixed mortgage rates as well as current mortgage interest rate for other loan programs.

Mortgage Brokers:

Big Investors Dominating Residential Real Estate Investment

Written By:
February 06, 2013 at 1:52 AM

New Home Construction

Cheap foreclosed homes across the nation have attracted droves of investors to the recovering housing market. The traditional mom-and-pop investors who have always depended on real estate investing to fund their retirements no longer have this landscape to themselves. The chance to earn huge profits has gained the attention of big-time investors.

Big investors see significant profit opportunities after five years of real estate values plummeting. Between 2007 and 2012, residential home prices plunged an average of 34% nationwide, based on the S&P Case-Shiller Home Price Index. In some areas like Las Vegas and Miami, home prices dropped 50% to 60%.

Institutional investors dominating market

With more than 4 million Americans losing their homes to foreclosure, the demand for single-family rental homes has surged. Purchasing homes at deep discounts in a time of rising rents has created a windfall profit opportunity for investors. As a matter of fact, hedge funds and private equity companies are investing considerable resources into every segment of the real estate market, including vacant land, foreclosures, and homebuilding companies and building component manufacturers.

Paulson & Co real estate investment division has bought enough land to build 25,000 homes in Arizona, California and Nevada. According to Michael Barr, who heads Paulson’s real estate investment division. "Land is the accordion in the home building equation. It falls the most in a downturn, but also rises the most in an upturn," said Barr, Principal John Paulson made billions betting that many borrowers would default on subprime mortgage in 2006 and 2007.

In 2012, the private equity firm Blackstone Group invested $2.7 billion to purchase 17,000 single-family homes from the inventory of foreclosures. The firm intends to continue its buying momentum in 2013. The Silver Bay Realty Trust, which went public late last year, has bought over 2, 500 homes in communities hot hard by the foreclosure crisis. Silver Bay specializes in renovating, leasing and managing single-family homes. The real estate investment trust recently reveal in a SEC filing that it has plans to buy 3,100 more houses.

Homebuilders’ stock rising

Even the stocks of homebuilders have soared in recent weeks. The equities of Lennar, KB Home and Pulte Group have reached 52-week highs. At a minimum, all of the stocks have nearly doubled over the past year. The IPO of Tri Pointe Homes—a single-family-builder with developments in California and Colorado, pulled in $232 million and was up 20% on its first day of trading.

Now that the housing sector has returned to a favorable status, any investment banks predict that more homebuilders will take their companies public. "As the sector rotates back into favor again, it makes sense for housing companies to monetize," said Deutsche Bank executive Brad Miller.

Individual investors competing with institutions

According to CEO Brad Geisen, more wealthy individual investors have shown an interest in buying up a large number of foreclosure homes over the past 90 days. These investors believe the window of opportunity to find foreclosed homes at low prices is quickly closing. "No one knows how long it will last, so these investors are trying to buy as much as they can right now,” said Geisen.

The downside to having wealthy individuals and institutional firms investing in foreclosures concerns the power of their all-cash transactions. These cash buyers compete with the smaller investors and potential home for the same inventory of homes. Even if large investors bid lower prices for foreclosure homes, they have an advantage with the ability to offer cash and close quickly.





More About Home Buying
Please sign-in with Facebook.

Home Buying by State
Alabama Home Buying Illinois Home Buying Montana Home Buying Rhode Island Home Buying
Alaska Home Buying Indiana Home Buying Nebraska Home Buying South Carolina Home Buying
Arizona Home Buying Iowa Home Buying Nevada Home Buying South Dakota Home Buying
Arkansas Home Buying Kansas Home Buying New Hampshire Home Buying Tennessee Home Buying
California Home Buying Kentucky Home Buying New Jersey Home Buying Texas Home Buying
Colorado Home Buying Louisiana Home Buying New Mexico Home Buying Utah Home Buying
Connecticut Home Buying Maine Home Buying New York Home Buying Vermont Home Buying
Delaware Home Buying Maryland Home Buying North Carolina Home Buying Virginia Home Buying
District of Columbia Home Buying Massachusetts Home Buying North Dakota Home Buying Washington Home Buying
Florida Home Buying Michigan Home Buying Ohio Home Buying West Virginia Home Buying
Georgia Home Buying Minnesota Home Buying Oklahoma Home Buying Wisconsin Home Buying
Hawaii Home Buying Mississippi Home Buying Oregon Home Buying Wyoming Home Buying
Idaho Home Buying Missouri Home Buying Pennsylvania Home Buying