5 at 5: Your Daily Digest for Real Estate Investing, 1/20/21
Biden comes into office with a view to extending the eviction ban, the increase in stimulus in the first quarter, the interest rate hike and the slip of mortgage apps, the FHFA moratorium and the tax implications of the state.
In today’s news
President Joe Biden is expected to extend the federal eviction ban
Under executive orders, the new President of the United States is expected to sign an extension of the ban on federal evictions through March 2021 today, and is expected to ask Congress to keep it in effect until September.
Why It Matters: CNBC reports an estimated 14 million Americans are behind on their rent. Helping them stay paid is good for them – and their landlords. The pandemic affects everyone.
Marcus & Millichap see lift for the first quarter from the stimulus package
With $ 25 billion in rental support, the Paycheck Protection Program, and support from airlines, cinemas, and live venues, the much-belated new COVID-19 aid package supports commercial real estate, Marcus & Millichap (NYSE: MMI)) it goes all in one report quoted today on Connect Commercial Real Estate.
Why it matters: The package would have far-reaching implications, but it needs to find its way through Congress. However, this now seems far more likely as the Democrats control both the chambers and the White House.
MBA: Mortgage applications fall as interest rates rise
Mortgage applications were down 1.9% from a week earlier. This is based on data from the Mortgage Bankers Association (MBA) weekly mortgage application survey for the week ended January 15.
Why It Matters: The average 30-year fixed-rate mortgage rate rose to 2.92%, its highest level since November, and that’s starting to let up in demand, the MBA says. Only time will tell if rates rise enough to seriously dampen a hot housing market in most areas.
Today on Millionacres
FHFA extends foreclosure, eviction moratoriums: what this means for investors
The Federal Housing Agency (FHFA) has again extended its foreclosure and eviction moratorium, this time until February 28th. The agency had already extended the measures to January 31 in December.
Why It Matters: Millionacres’s Aly Yale notes that in the face of the still-raging COVID-19 pandemic, the government is working hard to ease the burden on consumers – especially those related to housing costs. Of course, if you’re a real estate investor, this will continue to affect your bottom line until the health crisis resolves.
State and Local Taxes Vary Wide: What RE Investors Should Know
Taxes are taxed everywhere, and real estate investors – and everyone else – have the same requirements when it comes to the Fed. But there is a huge difference depending on which state and city you are in.
Why It Matters: New York has the highest and Alaska the lowest percentage of income. This report provides a solid foundation for your assessment of the tax implications in each of these states – and everywhere in between.