NEW YORK, NY – Mortgage rates showed only subtle movement this week, with the benchmark 30-year fixed mortgage rate inching lower to 4.03 percent, according to Bankrate.com’s weekly national survey. The average 30-year fixed mortgage has an average of 0.30 discount and origination points.

The larger jumbo 30-year fixed climbed for a third consecutive week, rising to 4.15 percent, while the average 15-year fixed mortgage rate went up more subtly to 3.27 percent. Adjustable mortgage rates were mixed, with the 5-year ARM unchanged at 3.52 percent and the 7-year ARM increasing to 3.72 percent.   

Mortgage rates were mostly higher for a third week in a row. A Federal Reserve that is seen, at least intermittently, as being more hawkish and the prospect of forthcoming tax reform have both pushed bond yields and mortgage rates higher. Mortgage rates are closely related to yields on long-term government bonds. Talk of tax reform tends to get investors thinking about quicker economic growth, higher inflation, and higher interest rates. Coupled with a Fed that is now working both small- and long-term interest rates through monetary policy and the unwinding of their bond portfolio, investors are seeing signs of higher interest rates in every direction they look. At least until the next crisis gets investors’ blood pressure rising.

At the current average 30-year fixed mortgage rate of 4.03 percent, the monthly payment for a $200,000 loan is $958.29.

SURVEY RESULTS

30-year fixed: 4.03% — down from 4.04% last week (avg. points: 0.30)
15-year fixed: 3.27% — up from 3.25% last week (avg. points: 0.26)
5/1 ARM: 3.52% — unchanged from last week (avg. points: 0.36)

Bankrate’s national weekly mortgage survey is conducted every Wednesday from data provided by the top 10 banks and thrifts in 10 top markets. For a full analysis of this week’s go in mortgage rates, go to www.bankrate.com

The survey is complemented by Bankrate’s weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days. There is no clear consensus this week, as 42 percent of respondents expect a decline in mortgage rates while 31 percent forecast an increase. Just 25 percent predict that mortgage rates will remain more or less unchanged in the coming week.

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WACO, TX – FM Capital’s rapidly expanding student housing portfolio welcomes the addition of Enclave at the Stadium in Waco, Texas. Enclave is a 430-bed (200 unit) student community located within a mile of Baylor University.

“Baylor’s strong athletics, coupled with academic prestige, and nearly 13% enrollment growth (over the past five years) make it a much-desired student destination,” says Aaron Kurlansky, Principal, FM Capital. The property consists of 14 two-tale buildings spread across a 15.5 acre lot, and is directly across from the university’s football stadium, where the consistently strong Baylor Bears frequently draw sell-out crowds. “We look forward to capitalizing on this as we go forward with this asset.”

FM Capital plans to maintain the name and general appearance of the property while making a few marked improvements.  Improvements include landscaping, fresh paint, updating the clubhouse furniture and equipment, and improving other amenities to cater to the students’ active lifestyles. In addition, Enclave’s unique tailgating park will be enhanced with updated barbecue and seating stations. Furthering its pet-friendly attitude, new ownership will add a spacious and modern dog park in the coming months.

FM Capital is actively acquiring student housing properties in strong markets near and adjacent to universities with growing student populations. 

FM Capital is a full service vertically-integrated Commercial Real Estate (CRE) investment firm, headquartered in New York and South Florida. Since their inception in 2007, they’ve bought and disposed of more than $1 Billion in assets, over 15,000 multifamily units, and over 3,000 student beds.

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HOUSTON, TX – Bluerock Residential Growth REIT announced that it has bought the 384-unit multifamily Villages of Cypress Creek Apartments in Houston, Texas.

BRG bought an 80% interest in the Cypress Creek property in an off-market transaction with an equity investment of $14.5 million, financing the remainder with a fixed-rate loan of $26.2 million. The Company, which will implement a $2.0 million renovation program to upgrade units and common spaces, projects the acquisition will yield a pro-forma stabilized cap rate of nearly 7%.

Located within the desirable Cypress/Fairbanks submarket of northwest Houston, Cypress Creek is a silent garden community with ample floorplans and surface parking typical of lower density, suburban locations. Built in 2001, the property features one-, two- and three-bedroom units averaging 975 square feet, two resort-style pools with barbecue area and gazebo, fitness center, game room with billiards table, business center with Wi-Fi, and a dog park. The property, which was not hurt by Hurricane Harvey, was nearly 94% occupied as of September 20, 2017.

The Cypress submarket, located 30 minutes northwest of downtown Houston, is among the 50 highest-income areas in the US, with average household incomes 26% higher than the greater Houston MSA and a median single-family home price of $315,000. The property attracts superior tenant demographics given its location within the Cypress-Fairbanks Independent School District, which is among the top 10 in Houston, and also benefits from its proximity to sizable employment centers including an 855,000 square-foot Amazon fulfillment center, now under construction. When complete, the center will accommodate more than 2,500 full-time employees.

“BRG was able to leverage its deep operating partner network to complete this transaction. We are confident that, with enhancements in place, Cypress Creek will be capable of generating strong revenue as well as solid net operating income growth, making it a sound performer for the REIT,” said Ramin Kamfar, Chairman and CEO of BRG.

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