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The MReport Webcast: Thursday 5/14/2015

Recent results from Trulia’s Rent versus Buy Report reveals that purchasing a home with a traditional 30-year mortgage and 20 percent down payment is cheaper than renting, but additional fees from the homeowner association can make renting seem more appealing, especially for New York and Honolulu residents, whose HOA fees are considerably higher. According to the report, buying a home is still a cheaper option than renting in all 100 largest U.S. metro areas.

Purchasing a home is 35 percent cheaper, a 2 percent increase from last year, and the growth of home prices has soared over rents nationally. Additionally, there are two more statistics that appeal to homeownership. First, the 30-year fixed-rate mortgage rate has decreased to 3.87 percent as of April 15, a fall from last years’ rate of 4.5 percent. Second, the home price gain was only 3.9 percent, not a huge jump from last years’ gain of 3.7 percent in rentals. These two trends have made homeownership an even more affordable and appealing option compared to renting.

At this years’ Federal Home Loan Banks directors conference, FHFA Director Melvin L. Watt, delivered a speech regarding the past year of positive developments that occurred in these 12 banks. Every FHLBank had a positive net income for the past 13 quarters, and they also earned $2.3 billion in 2014 and 2 point 5 billion dollars in 2013 collectively. The top 10 borrowers led the increase of $73 billion in 2014 of advance volume. By the end of 2014, regulatory capital was $49.5 billion, or 5.4 percent of total system assets, consisting of $13.2 billion in retained earnings, $33.7 billion in capital stock, and $2.6 billion in mandatorily redeemable capital stock.

About Author: Jordan Funderburk

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