Bidding wars bleed over to rental market

Bidding wars bleed over to rental market

Bidding wars bleed over to rental market
The bidding wars that have become commonplace in buyers’ quest to purchase a home is now expanding in to the rental market. According to a new report, the demand from renters is so high that there are sometimes dozens of applications for a single rental unit.

The average credit rating and income of renters in the U.S. is rising. Americans who might otherwise be primed for a home purchase are reverting to the rental market in the hopes that housing prices may cool down in the future.

Still, rent prices are surging as well. According to rental listing platform Zumper, the cost of a one-bedroom apartment rose 7 percent in July over last year.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 2.75 percent and 15-year rates are near 2.00 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.