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Foreign real-estate investors continue to eye U.S. housing

Posted by Mehran Aram on Mon, May 20, 2019 @ 05:05 AM

Demand from foreign investors for American homes has not waned despite a strengthening U.S. dollar, rising prices and looming trade wars. According to a survey conducted 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, who surpassed Canadian buyers in 2014 as the largest block of international buyers, accounted for approximately 25 percent of total foreign investment in residential real estate in 2018. This is according to the National Association of Realtors. Canadians remain the second largest group of foreign investors with 9 percent.

While investment of homes in the U.S. by Chinese and Canadian buyers may seem like a sizable amount, foreign investment in the American housing market is less than 3 percent of total home sales.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.125 percent, 15-year rates are near 3.625 percent and the 5-year ARM is averaging 4.00 percent.

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Topics: Housing Market, Mortgage rates, Foreign Investors, Foreign Real Estate Investors, Chinese Investors, American Housing Market, Association of Foreign Investors in Real Estate, Chinese Buyers, Residential Real Estate Investors, Residential Real Estate