7.09%: This is Freddie Mac’s reported average 30-year fixed mortgage rate – the highest it has been since April 2002, according to Sam Tenenbaum, Head of Multifamily Insights at Cushman & Wakefield.
“Obviously, there are lots of reasons people choose to buy versus rent, and the other way around, but the bottom line is that the rise in mortgage rates has created a record affordability advantage for the apartment sector relative to single family, which continues to grow wider every day," says Tenenbaum.
“In fact, this growing affordability advantage is one of the key reasons we saw apartment demand come in north of 85,000 units in the second quarter which was up more than 60% over the second quarter last year,” he continues.
To watch the entire "Behind the Numbers" video with Sam Tenenbaum, click here.