Freddie Mac's Multifamily Apartment Investment Market Index trended positive in the second quarter, buoyed by rising net operating incomes and low interest rates.
The index is up 0.7% quarterly and 2.6% annually, while multifamily mortgages rates increased by 5 basis points over the course of the quarter. The uptick is the first quarterly increase since the fourth quarter of 2018, but rates are still down 37 basis points annually.
"This quarter's AIMI shows a positive environment for multifamily investors in most markets, including those hit hard by the pandemic," said Steve Guggenmos, vice president of Freddie Mac Multifamily Research & Modeling. "The low-rate environment and strong net operating incomes offset a slight rise in mortgage rates, indicating a healthy market going into the second half of 2021."
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