Economists from Fannie Mae’s Economic and Strategic Research (ESR) group anticipate that mortgage rates and home prices will increase in 2022, according to the group’s October 2021 Forecast commentary. The group cites inflation, tightening monetary policy, and continuing home stock shortages as drivers of higher prices in 2022. Fannie Mae’s October economic forecast predicts the 30-year fixed-rate mortgage will average 3.3% in 2022. It raised its prediction of 3.1% last month in anticipation of the Federal Reserve tapering its purchase of mortgage-backed securities, which is expected to start by the end of this year. “While we still view the supply chain disruptions and, to a lesser extent, labor market tightness as largely transitory, we now expect both to last even…
Good Morning! Today is Friday, October 15. An FDA panel recommended booster shots for high-risk Moderna recipients. LinkedIn is shutting down in China, the last major social network to shutter there. Retail sales rose a seasonally adjusted 0.7% in September from the month before, the U.S. Commerce Department said. And in mortgage and housing news… Black Knight: Forbearances dropped another 10% this week, and they are now at their fastest rate of improvement since the pandemic began. Was Ishbia’s Crypto Move a ‘Stunt?’: After accepting just six cryptocurrency mortgage payments, UWM has signaled it’s not ready to do more. Millennials Vs. Boomers: A Zillow report found Millennials and Boomers are competing for housing, and Boomers are winning. Redfin: The number…
Good Morning! Today is Thursday, October 14. Interior Secretary Deb Haaland announced plans to line U.S. coastlines with wind farms. The Energy Information Administration predicts that home heating costs will go up because fuel prices are rising and fuel demand has increased over the previous winter. Democrats are still butting heads over what to cut from President Biden’s $3.5 trillion legislation, with Bernie Sanders saying Medicare benefits are non-negotiable. And in mortgage and housing news… Interest Rates Top 3%: Mortgage rates rose their highest point since April, hitting 3.05% over the past week, Freddie Mac reported.“Forbearance Cliff?”: Housing advocates have warned of a flood of forbearance filings. So far there’s no sign of it, and analysts don’t see it coming.Homeownership…
With COVID-era forbearance programs coming to an end, some housing activists warned of an approaching flood in forbearance filings. But so far, that hasn’t happened, and the signs are good that forbearance rates will remain low. The end of government forbearance protections is indeed causing an increase in the number of foreclosure filings. ATTOM’s latest Foreclosure Market Report, for Q3 2021, finds scheduled auctions or bank repossessions are up 34% from the previous quarter and 68% from a year ago. However, those increases are from historic lows, as forbearance relief artificially lowered the numbers. In fact, there were just 45,517 U.S. properties with foreclosure filings in the quarter. “Despite the increased level of foreclosure activity in September, we’re still far…
Mortgage rates rose to their highest point since April, hitting 3.05% over the past week, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 3.05%, up from last week’s 2.99%. A year ago at this time, the 30-year FRM averaged 2.81% “As inflationary pressure builds due to the ongoing pandemic and tightening monetary policy, we expect rates to continue a modest upswing,” said Sam Khater, Freddie Mac’s Chief Economist. “Historically speaking, rates are still low, but many potential homebuyers are staying on the sidelines due to high home price growth. Rising mortgage rates combined with growing home prices make affordability more challenging for potential homebuyers.” Mortgage applications have trended down with increasing interest rates…
Women have been disproportionately impacted by the pandemic, but none more so than single women. After Covid-19 ravaged their work and home lives, almost 60% of single female heads of household (SFHOH) now say they don’t see homeownership in their futures, a Freddie Mac survey found. “The COVID-19 pandemic has had disparate economic impacts nationwide, particularly on women who are heads of their households, such as single moms and caretakers,” said Pam Perry, Single-Family Vice President of Equitable Housing. “In this survey, we discovered this population’s housing and financial challenges have been further complicated by pandemic-related workplace disruptions and current economic conditions. While the survey showed some feel confident in their knowledge of finances and building credit, many lack confidence…
Good Morning! Today is Tuesday, October 12. Workers are heading back to the office at the highest rate since the pandemic began. Southwest Airlines canceled more than 28% of its weekend flights, including hundreds on Monday. Matt Amodio’s historic run on “Jeopardy!” came to an end Monday night, leaving the Yale doctoral student with 38 wins and more than $1.5 million in prize money. And in mortgage and housing news… Forbearances Fall: Forbearances plummeted to 2.62% of servicers’ portfolio volume last week, down from 2.89% the week before, according to the MBA. Analysis: Do low-income buyer programs help or hurt? Economists are raising questions about the real-world impact of some government programs designed to help low-income buyers enter the market.NAR:…
Good Morning! Today is Friday, October 8. Senate Republicans and Democrats reached a deal to temporarily extend the debt ceiling through December. Tokyo was hit by a 6.1 magnitude earthquake. Ireland signed onto a global agreement to set a minimum 15% corporate tax rate. And in mortgage and housing news… Black Knight: The number of plans in active forbearance fell by 11% since last Tuesday, the largest weekly decline in twelve months. HPSI Drops: Fannie Mae’s HPSI fell 1.2 points to 74.5 in September, as consumers continued to report that housing prices make it a bad time to buy a home. Housing Affordability Concerns Nationwide…: The latest Market Pulse report shows troubling trends in housing affordability. …And in California: A …
Fannie Mae’s Home Purchase Sentiment Index (HPSI) fell 1.2 points to 74.5 in September. Three of the index’s six components dropped month-over-month. The full index is down 6.5 points year-over-year. More consumers, 66%, reported that it’s a bad time to buy a home in September than in August, when 63% of respondents said the same. Only 28% said they believe it’s a good time to buy. The home-selling conditions component stayed flat, as a majority of consumers reported they believe it’s a good time to sell. “The HPSI declined slightly this month but remains within the general bounds we’ve seen since the end of last year,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “The survey’s story…
Good Morning! Today is Thursday, October 7. Facebook has slowed the release of new products for “reputational reviews.” GM wants to double its revenue by 2030 with battery-electric models and auto services. WHO approved the first Malaria vaccine. A federal judge issued a preliminary injunction blocking the Texas abortion ban. And in mortgage and housing news… Freddie: Mortgage rates fell slightly to 2.99% over the past week, Freddie Mac reported. Non-QM Tech: Angel Oak Mortgage Solutions is focusing on streamlining the process of closing non-QM loans so that it more closely resembles closing an agency loan. Averages Rise: The average homebuyer’s monthly mortgage payment rose $50 over the last six weeks. Hispanic Homeowners: Hispanic homeowners are driving the U.S. market.…
