“Low interest rates are a positive for REITs because they really offer investors an attractive yield alternative relative to Treasurys or fixed income and you have a growth characteristic to that dividend yield that will go up and increase versus kind of a fixed return over a period of time.”
The Burleys owe about $30,000 more on the downtown home’s mortgage than the home is currently worth. That made selling it a problem.
This as the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.35 percent from 4.33 percent. Mortgage rates have barely moved in the past several months.
Improvement, however, does not mean the level of distressed housing is back to normal; not by a long shot. There continues to be a wide discrepancy between states that require a judge in the foreclosure process and those that do not.
“We see a lot of boomerang buyers. I’d say about 20 percent of my current clientele has either suffered a short sale or a foreclosure in the past and are now re-buying back into the marketplace,” said Matt Weaver, a lender with PMAC Lending Services in Florida.
Since banks would be earning zero, or even less than zero, on their deposits at the Fed, their incentives to lend could change quickly, particularly if the Fed were to adopt a negative deposit-rate policy — something no one is currently expecting. With that dramatic step, the Fed could actually charge a fee for holding those deposits.
All told, Zuckerberg spent a total of $43 million to buy four properties around his house in 2012 and 2013 to secure his privacy.