By CHUCK GREEN
The housing market has been slowing down due to interest rate hikes, but that likely won’t stop officials from pushing further in their fight against inflation. And average American homebuyers and sellers will be affected by their decisions as affordability continues to be a concern nationwide.
Last week, the Federal Reserve Board voted to hold interest rates steady at their monthly policy meeting, keeping the federal funds rate target range between 5.25% and 5.5%.
Chairman Jerome Powell said in his remarks that despite the pause, “We are prepared to raise rates further if appropriate, and we intend to hold policy at a restrictive level until we are confident that inflation is moving down sustainably toward our objective.”…
By ERIN FLYNN JAY
Mortgage loans have some risks, as do student loans. But the two don’t add up to a toxic combination that threatens to cause a price crash in the housing market, and trillions of dollars of damages for taxpayers to clean up.
A recent WSJ opinion piece by Allysia Finley claims taxpayers are standing behind trillions of dollars in risky mortgages due to the way that student loan debt is calculated during the mortgage process.
In “The Student-Debt Bubble Fueled a Housing Bubble,” Finley blamed student loan repayment plans, saying monthly payments are capped at 10% of discretionary income.
“Many student borrowers consequently aren’t paying down their debt, but it isn’t counted against them when they attempt…
By PATRICK LAVERY
It wasn’t a reversal by any means, but the Federal Reserve Board voted Wednesday to maintain the federal funds rate target range.
Following the July unfreezing of June’s pause, that range is, for now, staying at 5.25% to 5.5%.
Federal Reserve Chairman Jerome Powell, in remarks to the press following the board’s latest release on monetary policy, stated once again his “dual mandate” to stabilize prices while keeping employment high.
“Given how far we have come, we are in a position to proceed carefully as we assess the incoming data and the evolving outlook and risks,” Powell said. “Real interest rates now are well above mainstream estimates of the neutral policy rate, but we are mindful of…
By PATRICK LAVERY
With the end of the third quarter of 2023 in sight, indications are that the Federal Reserve will pause hiking its federal funds rate this week – as it did in June before again raising the target range in July – and investors will be watching closely on Wednesday to see if Chairman Jerome Powell gives any indication as to what they might do to end the calendar year.
The FOMC’s course of action, while holding no direct bearing on mortgage rates, acts as a strong indicator of what direction those rates will go in next. According to Business Insider, a pause on the part of the Fed won’t do much to move mortgage rates, currently above…
By KIMBERLEY HAAS
Officials at the U.S. Department of Housing and Urban Development have awarded funding from a program established by the Inflation Reduction Act to owners of assisted multifamily housing properties and the money is going to climate-related investments.
The act, signed into law by President Joe Biden on Aug. 16, 2022, has done little to reduce inflation but is considered the most significant policy action on clean energy in United States history. It established the Green and Resilient Retrofit Program, providing HUD with $837.5 million in grant and loan subsidy funding and $4 billion in loan commitment authority.
According to a press release issued on Wednesday, money from the program will enable building owners to invest in geothermal…
Mortgage applications continued to sink last week, driven by continued refinance weakness.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – fell by 0.8%, down slightly compared to the week prior’s 2.9% decrease.
Adjusted purchase applications actually rose by 1%, while the unadjusted index dipped 11% from the week before and was 27% lower YOY.
Refinances drove the decline, dropping 5% and seeing their weakest levels since the beginning of this year. They currently make up 29.1% of total applications. In the past decade, refis averaged 58% of total activity.
The refi downturn led to the seventh dip in applications in eight weeks and their lowest levels since…
By SCOTT KIMBLER
As officials work to address racial bias in home valuations, leaders at a public policy think tank in Washington, DC, are saying recent recommendations made by a federal task force miss the mark.
The Interagency Task Force on Property Appraisal and Valuation Equity, or PAVE for short, was created in June of 2021 to tackle the problem of racial and ethnic bias in home valuations. Comprised of 13 federal agencies and offices, it is co-led by officials at the U.S. Department of Housing and Urban Development and the White House Domestic Policy Council.
In March of 2022, the PAVE Action Plan was released, and this past June the Biden-Harris administration announced a set of actions to deliver…
By ERIN FLYNN JAY
Inflation has affected the housing market as higher costs of living puts more stress on the average person’s finances.
The average American household spent $709 more in July than they did two years ago to buy the same goods and services, according to Moody’s Analytics.
“High inflation of the past 2+ years has done lots of economic damage,” Mark Zandi, chief economist at Moody’s Analytics, wrote in a post on X, the platform formerly known as Twitter.
Rick Sharga, President & CEO of CJ Patrick Company, said among other things, inflation makes it harder for renters to save money for a down payment, and as home prices tend to go up over time, the amount of…
Andrew Strickman has been named Chief Marketing Officer by New American Funding, the lender announced in a press release.
Strickman will further NAF’s growing brand in his new position, bringing more than two decades of marketing experience to the company in its 20th year.
“We are incredibly excited to welcome Andrew to the NAF family,” NAF President Christy Bunce said.
“As a mission-driven mortgage lender that believes homeownership opportunities should be available to all, Andrew comes to us with a wealth of knowledge working with and for purpose-driven companies like ours. His perspective on building brands that drive business results, and his approach to storytelling will serve us well as we move into this next chapter of our company’s history.”…
By KIMBERLEY HAAS
The co-founder and president of a relationship management automation provider for mortgage professionals says taking a more personal approach to messaging makes a difference.
Jason Perkins says at Bonzo they were intentional about the features and assets they built into their system.
“We really wanted something that was going to move the needle for our business and create more conversations,” Perkins said in a recent interview with The Mortgage Note.
Perkins said they looked at the work loan officers were performing and figured out how to scale their voices with a few clicks of a button. A user can do everything from converting leads to nurturing past clients, he said.
“We have a broadcast feature, and you…
