Welcome to the Pocket List, investors 👋

Here’s what we’re getting into today…

• The White House outlines affordable housing plan

• Where renters are heading

• The “magic” mortgage number that could get homeowners to sell

• Your FREE pocket listing

Plus, a whole lot more.

Let’s make some money today, shall we?

First, let’s check in on mortgages…

What’s driving rates this week?

• Consumer price index data came in a bit hotter than expected, showing just how stubborn inflation is

THE LEAD

Let’s recap what you might have missed this week…

State of the Housing Market

During last week’s State of the Union address, President Biden shared his administration’s plans to make housing more affordable. Here’s what he’s proposing…

• A $10,000 tax credit to incentivize homeowners to sell their "starter homes” aka a house priced below the median home price of the area

• A $5,000 tax credit for first-time homebuyers that would help offset high mortgage rates

But… Critics point out that the move could actually have the opposite effect and increase demand for housing, thus jacking up prices.

“One more thing.” - Steve Jobs President Biden… The White House also wants to attack supply issues directly. It’s plan…

• A $20B grant to incentivize builders to create more affordable housing

• Work with local governments to remove barriers to new construction

Just one problem… Congress controls the purse strings and would need to be on board with the proposals. A divided Congress isn’t going to help. And, to be fair, President Biden could be Former President Biden by the time this picks up any steam.

💭 Mr. Pocket Listing says… Don’t hold your breath on this getting done…

NEED TO KNOW

The other real estate investing news you need to know…

Falling for you

These days, there are few things homebuyers like seeing more than an interest rate in the 6’s. Luckily, mortgage rates swung back below 7% last week, sending application volume up 7.1%.

• Why? According to the Mortgage Banker’s Association, “because of incoming economic data showing a weaker service sector and a less robust job market, with an increase in the unemployment rate and downward revisions to job growth in prior months.”

💭 Mr. Pocket Listing says… Whatever the reason… we’ll take it.

• That’s not all… The number of refinance applications soared 12%. Don’t forget, refi rates are more sensitive to moves.

Homebody

Fewer renters are moving out of their metro area. For the second year in a row, the number has declined. And even fewer are crossing state lines for a move.

But that doesn’t mean it’s not happening. It just means we need to be more diligent in identifying trends.

Here are the top metro areas attracting inbound interest (% of inbound searches from outside the metro area according to Apartment List)…

• Durham, North Carolina (62.7%)

• Charleston, South Carolina (60.9%)

• Lakeland, Florida (60.1%)

• Stockton, California (57.7%)

• Cape Coral, Florida (56.6%)

• Colorado Springs, Colorado (56.6%)

• North Port, Florida (55.6%)

• Bridgeport, Connecticut (55.4%)

• Greenville, South Carolina (55.4%)

• Greensboro, North Carolina (54.9%)

👀 Mr. Pocket Listing is keeping an eye on… Renters moving to new metros could be seeking more affordable housing. Lots of movers from out of town can be a good indicator of future population growth and price appreciation.

Mr. Pocket Listing’s favorite property of the week (a guy can dream, can’t he?)…

DATA DUMP

For all the numbers guys and gals out there…

• 3x / Realtor.com says that “the rate of housing starts would need to triple to keep up with demand and close the existing 7.2 million home gap in 4 to 5 years.” (Read)

• 80% / The additional amount homebuyers need to earn in 2024 (vs. 2020) to be able to afford a house. Spoiler: it’s not just due to high mortgage rates. (Read)

• 5% / According to experts, this is the magic mortgage rate that could get homeowners to sell again (Watch)

• 60%+ / Shelter and gasoline costs drove more than 60% of this week’s consumer price index increase (Read)

What else Mr. Pocket Listing is reading…

• “Steering”: The homes your real estate agent doesn't want you to see (Read)

• What’s ‘in,’ what’s ‘out,’ and what to expect this spring home-buying season (Read)

• Rent Trends at some Large Holders of Multifamily Properties (Read)

• Location, Location, Location: The Unchanging Truth of Real Estate Value (Read)

• More Homes Are for Sale but the Market Remains at a Standstill—When Will Demand Come Back? (Read)

Bonus…

• Chasing Passive Income, Americans Turn to Vending Machines (Read)

SOCIAL STUDIES

Before we go, one last gift from Mr. Pocket Listing…

If you’re enjoying the Pocket List, make sure to share it with your friends and fellow investors. Send them here.

One last thing…