Demand from foreign investors for American homes has not waned even among a strengthening U.S. dollar and rising prices. In fact, according to a 2017 survey by the Association of Foreign Investors in Real Estate, 95 percent of foreign buyers stated they plan to maintain or increase their purchase activity in the U.S.
Chinese buyers are the largest block of foreign investors, spending $31.7 billion on residential properties in the U.S. between April 2016 and March 2017, according to the National Association of Realtors. Chinese buyers, however, are facing increasing hurdles from the U.S. Treasury Department Financial Crimes Enforcement Network as well as a crackdown by their own government. Mainland China has tightened restrictions on how much capital residents can spend outside the country.
A government report shows that more than 30 percent of cash purchases from foreign buyers were suspected of suspicious activity.
Today, those looking to finance their next home purchase will find conforming no-point 30-year fixed mortgage rates are averaging 4.375 percent, 15-year rates are near 3.875 percent while the 5-year ARM is averaging 4 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.