Agenda - Council Work Session - 04/28/2020

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CHALLENGES AND OPPORTUNITIES would greatly affect the housing market and would slow projected for -sale housing de- mand. The following chart illustrates historical mortgage rate averages as compiled by Freddie Mac. The Freddie Mac Market Survey (PMMS) has been tracking mortgage rates since 1971 and is the most relied upon benchmark for evaluating mortgage interest market conditions. The Freddie Mac survey is based on 30-year mortgages with a loan -to -value of 80%. 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Historic 30-year Mortgage Rates 1972 to 2019 YTD N N NND N 00 0 ONo coo coo coo Q01 QN1 Qc1 Qa1 Qa1 0 0 0 0 0 0-• 0 al al al al al al al al al al al al al a1 0 0 0 0 0 0 0 0 0 0 c-I c-I c-I c-I c-I c-I c-I c-I c-I c-I c-I c-I c-I c-I N N N N N N N N N N • Ramsey COR. The 300+-acre COR is centered around the NorthStar Commuter Rail Station along U.S. Highway 10/U.S. Highway 169 and is the epicenter of activity in the City of Ram- sey. Several multifamily housing projects have been completed or are under construction and the neighborhoods either within or adjacent to the COR should continue to attract mul- tifamily housing development. The sites in the COR will be favored from multifamily hous- ing developers due to the proximity to transit, retail, services, and parks. However, as va- cant parcels are absorbed it will be imperative for the City of maintain other higher -density guided land to accommodate future multifamily housing products. • Naturally Occurring Affordable Housing/Preservation. Based on the rental rates among the rental housing stock inventoried in Ramsey, about 38% of the market rate rental units are considered affordable at 50% and 60% AMI. Although the majority of new rental housing in Ramsey is considered move -up or luxury rentals; 62% of all units in Ramsey are considered affordable at 80% AMI. MAXFIELD RESEARCH AND CONSULTING 158