"I am scared, in part due to the fact that my father and mother had a lot of problems with their mortgage and due to the job market," said Charles Desanpedro Jr., a renter in Northern New Jersey.
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Fear and financing have kept the apartment rental market strong for the past several years, with rising rents and falling vacancies. Rents rose yet again in the second quarter of this year, according to a new report from Reis, up more than 2 percent from a year ago. But rents and vacancies have been stabilizing of late, as buyers return to the market.
Mark Sadaka and his wife are looking to buy a home in New Jersey.
"It's hard to get a mortgage, but now things have apparently lightened up. I don't know, we're exploring that now," said Mark.
Mortgage credit is easing up slightly, according to a new index from the Mortgage Bankers Association. The increase was driven by a small uptick in the number of jumbo, investor and cash-out products as well as those with higher loan-to-value ratios. All those are riskier loans.
But while credit is easing slightly, mortgage rates are rising. The 30-year fixed hit 4.41 percent on the Zillow Mortgage Marketplace, up 24 basis points from a week ago.That's the highest in two years. Rates could move higher after Wednesday's release of the Federal Open Market Committee meeting minutes and more clues to the easing of federal stimulus in the mortgage market.
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Rising rates have already taken away considerable purchasing power for potential buyers. Fewer consumers now think it's a good time to buy compared with just a month ago, according to a survey from Fannie Mae.