May 08 2025

Reef Daily

Reef Daily | May 08 2025

Housing Market Update

Latest Market Data (May 8, 2025) The Multifamily Market Survey (MMS) released today by the National Association of Home Builders (NAHB) shows the Multifamily Production Index (MPI) decreased three points to 44 year-over-year, marking the seventh consecutive quarter below the break-even point of 50. The current MPI reading is consistent with NAHB's forecast for a modest decline in the rate of multifamily production for the remainder of 2025, followed by a modest recovery in 2026. Multifamily developers continue to experience major headwinds from rising construction costs, regulatory barriers, and availability of financing.

Construction Activity Among the multifamily components reported today, the garden/low-rise segment dipped one point to 54, the mid/high-rise component fell eight points to 28, the subsidized units component held steady at 50, and the built-for-sale component posted a one-point decline to 38. The Multifamily Occupancy Index (MOI), which measures existing apartment owners' sentiment about occupancy, remained solidly positive at 82, though slightly down from 83 a year ago.

Mortgage Rates

Type	Today's Rate	Last Week's Rate
30-year fixed	6.85%	6.79%
15-year fixed	6.03%	5.98%
5/1 ARM	6.10%	6.14%

Freddie Mac reported today that 30-year fixed mortgage rates remained flat at 6.76%, unchanged from last week but down from 7.09% a year ago. The 15-year fixed rate decreased three basis points to 5.89%. According to Freddie Mac, current mortgage stability has sparked continued increases in purchase applications. Mortgage applications jumped 11% for the week ending May 2, reversing three consecutive weekly declines.

Notable Transactions

Commercial Highlights An industrial property in Greenvale has sold for $1.7 million. GM Plaza LLC, an affiliate of G&M Works (a site work and landscape design firm) purchased the 8,082-square-foot building on 0.50 acres at 15 Plaza Road. The property was previously the long-time home of Roman Iron Works, and G&M Works will be relocating their operations from Island Park.

Regional Activity In the South, Carnival Corporation announced plans for a new global headquarters in Miami's Waterford Business District, with construction of a multi-building campus to house approximately 2,000 North American team members by 2028. Additionally, Willow Bridge Property Co. has opened Leksa at CityPlace, a 391-unit luxury multifamily community in Doral, Florida.

Market Indicators

Inventory Trends The MBA Mortgage Refinance Index increased to 721 points in the week ending May 2, up from 649 points in the previous week. This significant 11% rise in mortgage application volumes coincides with the momentary stabilization in markets allowing homebuyers to retest the market.

Buyer Demographics In the refinance market, Veterans Affairs loans surged by 26%, contributing significantly to the overall 11% increase in refinance applications reported by the Mortgage Bankers Association yesterday. Both purchase and refinance applications increased at the same 11% rate, showing renewed interest across buyer segments.

Regional Developments

In Miami's Brickell neighborhood, Prosper Group and Forte Development submitted a pre-application for an 80-story mixed-use tower at 1040 South Miami Avenue. The proposal includes plans for a 945-foot-tall structure comprising residential, hotel, and retail components, submitted under Miami-Dade County's Rapid Transit Zone program.

Sources

This newsletter is for informational purposes only and should not be considered as financial advice.