Financing costs for real estate investors ticked up slightly last week, this according to the most recent mortgage rate data from Freddie Mac. According the survey, the average 30 year fixed rate for residential detached investor properties, clickedNew Housing Starts Falter up one basis point from 3.83% to 3.84% compared to the previous week. In essence, interest rates remain unchanged and are still well below the 4.00% mark. The housing market is moving along well but recent figures show a half in new home starts. Last February, new housing starts hit the highest level in more than nine years but according to data released by the Homebuilder’s Association, housing starts declined by -1.2%. In the multifamily, apartment building category they fell even further by -7.9%.

 Existing home sales hit 5.33 million last month, higher than what analysts had been expecting and when you combine that data with the slowdown in new housing starts we can see there could be an increased tightening in the residential market at least for the remainder of the year. Higher prices for existing homes with new inventory shrinking can only drive up the price of real estate as well as increasing rental rates for most parts of the country.

For now, as we approach the middle of Q2, there doesn’t seem to be a whole lot of consistent data that can provide some sort of clarity and when there is no vision investors will continue to park their money in bonds. Other investors see the real estate market only getting better and could only push the price of real estate up for the remainder of 2016 and into 2017.