Mortgage interest rates have continued to rise, averaging 4.63% in February; their highest level since the end of 2013. But more of an issue for sales is the chronic shortage of homes for sale, which has pushed buying sentiment down to nine-year lows. Apartment construction has been fairly steady in recent months, and strong rental demand has helped arrest the downward trend in the three-month absorption rate. Admittedly, the Reis measure of the apartment vacancy rate edged up again in the final quarter and, at 4.5%, is at a five-year high. But that didn’t prevent the first rise in seven quarters in the annual growth rate of effective rents.
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