Mortgage rates decreased this week in Miami. Meanwhile, the city is the least affordable for renters in the nation, the South Florida Business Journal reported.
A study by the New York University Furman Center for Real Estate & Urban Policy looked at income levels and rents in 11 of the country's largest metro areas to determine affordability. The acceptable levels of spending on housing cost is 30 percent of income, yet in Miami 36 percent of renters pay more than 50 percent of their monthly income for rent and utilities -- a higher rate than even San Francisco and New York. Additionally, only 32 percent of rental properties available were considered affordable by the study.
The study also found that 65 percent of people living in Miami are renters. That is a 25 percent increase since 2006 and second largest behind Philadelphia, which had a 28 percent bump. Median income for renters increased by 6 percent while income for the entire metro area declined by 10 percent over the period in the study.
The benchmark 30-year fixed-rate mortgage in Miami tumbled to 3.78 percent from 3.94 percent, according to the Bankrate.com national survey of large lenders. The mortgages in this week's survey had an average of 0.19 discount and origination points. Nationally, the 30-year fixed-rate mortgage was 3.8 percent.
The benchmark 30-year jumbo mortgage, for loans of $417,000 and up, sunk to 3.88 percent from 4 percent. The benchmark 15-year fixed-rate mortgage dropped to 3.09 percent from 3.21 percent. The benchmark 5/1 adjustable-rate mortgage fell to 3.17 percent from 3.25 percent.
Weekly mortgage survey
|Results from Bankrate's March 25 survey of mortgage lenders. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $417,000 in Miami.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||3.78%||3.09%||3.17%||3.88%|
|Change from last week:||-0.16||-0.12||-0.08||-0.12|
|Change from last week:||-$14.93||-$9.53||-$7.18||-$28.52|