Housing Slowdown Puts Damper on Rent-Backed Bonds
- Sales of single-family rental-backed bonds to decelerate
- Strong rental market is still a positive for the sector
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Sales of bonds backed by debt associated with single-family rental housing has soared over the last two years, as rents climbed across the country. Now, with the housing market contracting, issuance is set to cool from record levels.
BofA Securities Inc. predicts that single-family rental (SFR) securitizations -- which repackage a single loan tied to multiple properties -- will fall to just $2 billion for the rest of 2022 as Federal Reserve rate hikes send shivers across the industry.