MBA: Rising Rental Costs May Drive Home Sales Up

From RealTrends.com:  Home sales could turn out sunnier than expected this spring based on data coming out of the rental market, according to economists at the Mortgage Bankers Association.

Jay Brinkmann, the trade group’s chief economist, said recently that apartment owners have raised their rates, in particular large investment trust Equity Residential ($56.91 0%). That’s coupled with fewer people, roughly 60%, who intend to renew a lease, according to a study by Kingsley Associates.“This means we might see a spring season better than the numbers are predicting,” Brinkmann said at the MBA’s mortgage servicing conference in Orlando, Fla. The trade group forecasts 4.39 million single-family homes sold in the second quarter, already an increase from the seasonally adjusted 4.17 million a year earlier.

Read More: MBA: Rising rental costs may drive home sales up | HousingWire.