Top markets for affordable renovated housing inventory

Despite the rapidly deteriorating affordability, there is some hope for homebuyers in the form of renovated homes: properties that have been rehabbed into move-in ready condition after being purchased at auction.

HousingWire Magazine: December 2021/ January 2022

AS WE ENTER A NEW YEAR, let’s look at some of the events that we can look forward to in 2022. But what about what’s next for the housing industry?

Back to the Future of Mortgage Lending

This webinar will be a discussion on understanding what’s to come in the future of mortgage lending by analyzing past trends in the industry, evolving consumer behaviors and demographics of the industry’s production capacity.

Logan Mohtashami on Omicron and pending home sales

In this episode of HousingWire Daily, Logan Mohtashami discusses how the new COVID variant, Omicron, will impact inflation and whether or not it will send mortgage rates lower.

Politics & MoneyMortgage

3 interest rate hikes in 2017? Not a chance

New American exec explains why

In December, the Federal Reserve made its first and last interest rate hike for 2016, but left the industry with the notion that three more could be on the way for 2017. However, one expert told HousingWire that’s all talk.

Jason Obradovich, New American Funding executive vice president of capital markets, explained that for all its intentions, the Fed probably won’t be raising rates as much as it would like in 2017.

“The Fed has been trying to raise rates for several years in a row and they’ve only done it one time per year, and in December of all months,” Obradovich said in an interview with HousingWire. “They literally waited until the very last moment of each year to raise rates.”

After President-elect Donald Trump took office, interest rates spiked for nine straight weeks, and even hit two-year highs.

The last two weeks, however, brought a change as mortgage rates once again began to drop. Obradovich confirmed that the increase seen after the election would not be the new norm for 2017 as the economy cannot support such constantly-rising rates.

“We might see a tax cut which also could drive up inflation, it could raise rates, but in the long run, I just don’t know if the United States could support higher rates,” he said. “I just don’t know how much higher it really can go than where it is now.”

Not all industry experts agree with Obradovich. OwnAmerica CEO Greg Rand, explained that there is nothing to fear headed into 2017. Federal Reserve Chair Janet Yellen herself sent the dollar soaring to a 14-year high in December as she voiced her own confidence in the U.S. economy.

Nevertheless, Obradovich held to his original sentiments that the economy is not in a place to support three rate hikes in 2017.

“I know they are discussing, and their dot-plot suggests that they’re going to raise rates three times in 2017, I just – unless there’s some massive tax cuts or infrastructure spending or deficit spending by the Trump administration, I just don’t see an environment where they could raise rates three times,” he said.

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