Mortgage companies are losing more money in the housing market than ever before, according to a report from RealtyTrac.
The study, which analyzed real estate data between January and September 2018, shows that the top 5 largest losers in the industry are REITs, investment firms, real estate agents and residential builders.
“The real estate market is facing a new wave of investors looking to take advantage of low interest rates, but also for access to housing,” Realty Trac’s Andrew Fennell said.
“For many of these investors, homebuying is the best bet because it is the safest bet and they can afford to borrow from a bank or brokerage.”
The report also found that the median age of those buying homes was increasing, and they were also moving out of states where they are more likely to be priced out of the market.
“We’re seeing a growing trend of investors moving to places with higher cost of living, lower rents and lower mortgage rates,” said Paul D. Fessenden, CEO of the Real Estate Board of Greater Los Angeles.
“It’s also driving a lot of new home construction, which is encouraging more people to get into the market.”
Fessdenden said that this trend is also driving home prices higher in the Bay Area.
“With so many new units being built and homes on the market, it’s no wonder prices have gone up,” Fesssenden told The Hill.
“But it’s also a sign that a lot more people are looking at homes in more places.