Good Morning! Today is Thursday, January 27. Supreme Court Justice Stephen Breyer is retiring. Neil Young is removing his music from Spotify, saying it has become “the home of life-threatening Covid misinformation.” The U.S. rejected Russia’s demands that NATO retreat from Eastern Europe and bar Ukraine from ever joining, but offered other areas of negotiation.
The Mortgage Note Reports
Rate Increases Into 2023: At least one economist says the Federal Reserve is already behind the inflation curve, and the mortgage industry should expect interest rate increases into 2023.
Down, Up, Then Back Down: Mortgage loan application volume fell 7.1% from last week, with refis tumbling 13%, MBA reported.
“Appropriate Pricing Policies”: CHLA sent a letter to FHFA Acting Director Sandra Thompson asking for adjustments to upcoming second home fee increases.
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And in other mortgage and housing news…
FOMC Meeting: Federal Reserve officials are on track to raise interest rates in March. “There are many millions more job openings than there are unemployed people,” Chairman Jerome Powell said. “I think there’s quite a bit of room to raise interest rates without threatening the labor market.”
New Residential Sales: New home sales rose 11.9% in December, reaching their highest level since March 2021, according to data from HUD and the Census Bureau.
December Rental Data:Rents rose 19.3% YOY for 0-2 bedroom properties in December, though two-bedroom units saw the first monthly decline in more than a year.
“Jump-Start Purchase Season”: UWM announced that now through March 31 it will credit borrowers up to $600 for appraisal costs on all primary purchases, including jumbos.
Most Overvalued: Florida and Ohio are leading the pack in a ranking of the most overvalued markets in the largest 100 US metros.
Finding A Solution:A macroeconomist says the solution to housing affordability is to build more housing, support the construction workforce pipeline, and rewrite policy.