MCLEAN, VA – Baby Boomers and others aged 55 or older, including several million current homeowners, are poised to go to rental units based on estimates from the first Freddie Mac 55+ Survey of housing plans and perceptions of people born before 1961.

The Freddie Mac 55+ Survey shows an estimated 6 million homeowners and nearly as many renters prefer to go again and rent at some point. Of those that expect to go again, over 5 million indicate they are likely to rent by 2020.

Majorities of 55+ renters (79 percent) and homeowners (83 percent) who expect to rent their next home predict it will cost the same or less than their current one, according to the Freddie Mac 55+ Survey.

“When a population this large expects to go into less expensive rental housing, we have to expect it will make significant new pressure on both the supply and cost of existing affordable rental housing,” said David Brickman, executive vice president, Freddie Mac Multifamily.

Other findings from the Freddie Mac 55+ Survey found just over half of renters (51 percent) prefer renting over owning. This is especially right among existing multifamily renters (60 percent). The survey also underscores the need for additional affordable rental housing. Specifically, 47 percent of 55+ renters say they struggle from payday to payday, while 13 percent admitted they sometimes could not afford basics until their next paycheck.

Conducted by GfK on behalf of Freddie Mac, the Freddie Mac 55+ Survey is based on responses from nearly 6,000 homeowners and renters. The Survey explored other questions related to the housing preferences, retirement plans and financial concerns of Baby Boomers and those older who rent or own.

55+ Renters’ Future Housing Preferences and Predictions

When questioned to predict their future housing situation, significant percentages of 55+ renters say:

They plot to rent versus buying their next home. Among those 55+ renters who plot to go again, 71 percent of respondents plot to rent their next home. For many this may be a renter-by-choice choice as 38 percent say they have enough extra money to go beyond each payday including for savings. Further, more than half (59 percent) reckon it makes financial sense for people their age to be renters. This view is held by 67 percent of multifamily renters.

Their top attractions are affordability, amenities. Among the top “very vital” factors influencing their next go, respondents picked affordability (60 percent), amenities needed for retirement (47 percent), living in a community where they are no longer responsible for caring for the property (44 percent) and being in a walkable community (43 percent).

They don’t want to go far. Among those who plot to go again, 55+ renters want to relocate to a different neighborhood in the same city (31 percent) or a different property in the same neighborhood (23 percent) compared to those who want to go to a different city in the same state (18 percent) or go to a different state (24 percent).

They want family near (or in) their next home. When questioned to predict their retirement housing situation nearly six out of ten 55+ renters prefer to either go closer to their families or in with them. Hispanic single-family renters (44 percent) were most likely to predict they will go closer to family, while multifamily Asian-American renters (40 percent) were most likely to predict they will go in with their children.

The Freddie Mac 55+ Survey also found significant differences between the housing predictions of 55+ers who haven’t retired and the housing choices retirees really made. For example:

Thirty-four percent of renters predict they will live in their current home for the rest of their lives, but only 7 percent of retired renters say they currently live in the same home.

Forty-six percent of renters predict they will go closer to family in retirement, but of those already retired only 31 percent have done so.

While 12 percent of renters predict they will go in with an adult child, less than half that amount (5 percent) of those already retired are living with one of their adult children.

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STILLWATER, OK – EdR, one of the nation’s largest developers, owners and managers of high-quality collegiate housing communities, announced the recent commencement of construction on a collegiate housing community adjacent to Oklahoma State University in Stillwater, Okla.

As previously announced, this community is a joint venture with Laureate Campus Living. As majority owner, EdR will manage the community, named Avid Square, on behalf of the joint venture.

“The opportunity to add a collegiate community to our portfolio that is in the heart of a growing Oklahoma State University excites us,” said Randy Churchey, chief executive officer at EdR. “The community’s location — within walking distance of both campus and Stillwater’s entertainment district — and other characteristics fit our criteria and make it an ideal place for EdR to invest.”

The $47 million development is adjacent to the south side of campus and next to the new McKnight Center for the Performing Arts, also currently under construction.

Scheduled for completion in summer 2017, this community will offer 475 beds in a mix of studio, one-, two- and four-bedroom floor plans. The community will feature a pool, courtyard with grilling area, fitness center along with robust internet and Wi-Fi throughout the community.  Retail space on the ground floor will add comfort and convenience for the residents of Avid Square and other area students and residents.

Oklahoma State University boasts 25,854 students and is renowned for its programs in agricultural sciences and in engineering. It is a Sun Grant Research Initiative university, meaning it is a leader in the research and development of sustainable and environmentally friendly energy alternatives.

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NEW YORK, NY – Mortgage rates fell to a fresh 3-year low following the Brexit vote, with the benchmark 30-year fixed mortgage rate sinking to 3.61 percent, according to Bankrate.com’s weekly national survey. The 30-year fixed mortgage has an average of 0.24 discount and origination points.

The larger jumbo 30-year fixed didn’t fall as far, to 3.67 percent, and is higher than the average conforming rate for just the fourth time in the past year. The average 15-year fixed mortgage rate dropped to a 3-year low as well, 2.89 percent. Adjustable mortgage rates were down more modestly but enough to reach 3-year lows as well, with the 5-year ARM retreating to 3.01 percent and the 7-year ARM settling at 3.22 percent.

Mortgage shoppers are one of the beneficiaries of the recent market upheaval over the Brexit vote. The stock market staged a relief rally in the days ahead of the Brexit vote in anticipation of a ‘Stay’ vote, so the ‘Leave’ outcome threw global markets into a tailspin. If there is one thing investors despise it is uncertainty and there is plenty of that, which only enhances the lure of safe haven U.S. Treasuries. Mortgage rates are closely related to the yields on long-term Treasuries. The uncertainty about the global economy is even higher now, so bond yields and mortgage rates are lower. With that landscape unlikely to change this will help to keep mortgage rates at attractive levels for the foreseeable future.

At the current average 30-year fixed mortgage rate of 3.61 percent, the monthly payment for a $200,000 loan is $910.41. 

SURVEY RESULTS

30-year fixed: 3.61% — down from 3.73% last week (avg. points: 0.24)

15-year fixed: 2.89% — down from 2.97% last week (avg. points: 0.19)

5/1 ARM: 3.01% — down from 3.06% last week (avg. points: 0.25)

Bankrate’s national weekly mortgage survey is conducted each 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 with 46 percent predicting that mortgage rates will remain more or less unchanged and 36 percent forecasting a decline in the coming week. Very few panelists expect a rebound in rates with just 18 percent forecasting an increase over the next seven days.

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