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Increase in Available Rental Units Likely to Slow Down Rent Growth

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There’s good news on the horizon for renters: As the number of available rental units continues to the increase, the rate of rent growth is likely to slow down.

“Although an improving labor market with more jobs and faster wage growth should provide landlords with more leverage to increase rents, over time this will be stymied by the sheer number of new units that are going to come online, increasing competition in the market,” economist Ryan Severino told MarketWatch.

According to the news source, contractors have been steadily creating new units as the market prepares for an influx of new renters.

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Housing Market in 2015: Mostly Optimistic, with One Cause for Concern

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According to NPR, housing experts expect 2015 to be mostly positive on the home-buying front, though there is one cause for concern.

The news source says that, thanks to lower unemployment rates, lower housing prices, higher rents and an entire generation (millennials) ready to move out of their parents’ homes, the housing market is looking good.

But one thing to watch out for is that this could finally be the year that mortgage interest rates rise.

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Alternate Lenders Gaining Steam Among Millennials

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According to a new report by CNN Money, there is a current trend in the housing market toward alternate lending opportunities, especially as many individuals may not qualify for traditional loans.

In the last week alone, two new companies – Lending Club and OnDeck Capital – went public, earning $870 million and $200 million respectively.

This shift is especially prevalent among the millennial crowd.

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Homeowners Earn $1.7 Trillion Equity Bonus

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According to a new report by Zillow, homeowners in the United States earned a collective $1.7 trillion in additional  equity in 2014.

The gains came even despite the fact that home prices slowed down dramatically over the past year.

The report also noted that some homeowners tapped into the new equity already, nearly immediately taking out the money.

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Congress Votes to Extend SCRA One-Year Foreclosure Protection Period

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Congress voted unanimously on Wednesday to extend a provision of the Servicemember Civil Relief Act that prohibits banks from foreclosing on a servicemember’s house for one year following his or her return from active duty.

According to the CFPB Monitor, the protection period has been extended until January 2016.

“After fighting for our country overseas, our troops shouldn’t have to fight to keep a roof over their heads when they return home,” Sen. Sheldon Whitehouse in a press release.

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Obama Expected to Sign Tax Break Bill for Some Homeowners

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On Tuesday, Congress elected to extend several expired “temporary” tax breaks for 2014, and included in there are a couple of deductions for select homeowners.

First, homeowners paying mortgage insurance premiums will be able to deduct he cost of the their premiums if they itemize their deductions. And anyone who has foreclosed on a home or sold their home for less than the amount still owed to the bank and had their remaining debt forgiven, the IRS will allow you to exclude that amount from your income.

The bill is now in the hands of President Barack Obama, and according to CNN Money, he is expected to sign it.

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Lack of Inflation May Keep Interest Rates Low

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According to a new report from MarketWatch, the Federal Reserve may consider keeping interest rates low next year.

The reasoning behind the move is due to a lack of inflation.

“Why would the Federal Reserve raise interest rates in order to slow economic growth if inflation in fact was moving lower?” Bill Gross told CNBC, vaguely, on Monday.

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Millennials Can Afford to Buy – Just Not Where They Live

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In a new report by the Washington Post, it has been found that many millennials could afford to buy a home right now – just not in the cities where they currently live.

Many young people tend to gravitate toward certain cities, like San Francisco, New York and Austin. The bad news, though, is that those are among the 10 least affordable cities in the United States.

If they want to buy, millennials should look instead at Akron, Ohio; Dayton, Ohio; Rochester, N.Y.; Birmingham, Ala.; Indianapolis, Ind.; Detroit; Little Rock, Ark.; Gary, Ind.; Cleveland, Ohio; and Kansas City.

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Fed Urges Big Banks to Set Aside More Capital

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The Federal Reserve unveiled a proposal on Tuesday that would require several of the nation’s largest banks to set aside even more capital than they already have.

According to CNN Money, the new requirement is called “capital surcharges,” and the amount each bank must put aside will be determined by a set of criteria defined by the Fed.

The eight banks that would be affected by the new regulations are JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs, Morgan Stanley, Bank of New York Mellon and State Street.

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Experts Weigh in on Investing in Housing Versus Stock Market

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Although the government has once again been pushing for home ownership as the best way for individuals to build wealth, financial experts are quick to caution against it.

“It would perhaps be smarter, if wealth accumulation is your goal, to rent and put money in the stock market, which has historically shown much higher returns than the housing market,” Nobel Prize-winning economist Robert Shiller revealed at a Standard and Poor’s conference last week.

For one thing, home ownerships comes with a whole hosts of additional costs – like property taxes, insurance, maintenance, etc. – that doesn’t exist in the stock market.

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