The latest economic and policy trends facing mortgage servicers

Join this webinar for an in-depth roundtable discussion on economic and policy trends impacting servicers as well as a look ahead at strategies servicers should employ in the next year.

2021 RealTrends Brokerage Compensation Report

For the study, RealTrends surveyed all the firms on the 2021 RealTrends 500 and Nation’s Best rankings, asking for annual compensation data for the 2020 calendar year.

Zillow analyst on whether home prices can keep climbing

Today’s episode of HousingWire Daily features an interview with Nicole Bachaud, as she discusses annual and monthly home price appreciation growth, rising inventory levels and rent prices.

Lenders, it’s time to consider offering non-QM products

The non-QM market is making a comeback following a pause in 2020. As lenders rush to implement, Angel Oak is helping them adopt these new lending products.

Real Estate

Freddie Mac: August forecast shows affordability hinders growth

Supply and demand deter prospective homebuyers

Home sales growth is expected to slow through the remainder of the year, as a lack of affordability and supply contribute to a continual slowdown, according to Freddie Mac’s August Forecast.

During the second quarter of 2018, the U.S. economy grew at its fastest pace within the last four years, according to the report. However, housing activity played a limited role in this growth.

New home construction, existing-home sales and sales of new homes declined last quarter, due to homebuilder challenges including limited inventory and steady price gains, according to Freddie Mac.

Furthermore, recent data collected from the National Association of Home Builders/Wells Fargo Housing Opportunity Index revealed housing affordability has now reached a 10-year low in the second quarter of 2018.

Freddie Mac Chief Economist Sam Khater said the housing market hit some speed bumps this summer, as pricy homes and mortgage rates continue to hinder prospective homebuyers.

Khater said these challenges were predominantly seen in expensive markets out West, where demand and sales were dampened due to weakening affordability.

The forecast predicts inventory constraints will ease with a moderate rise in housing starts, but still expects market conditions to remain relatively unchanged.

Freddie Mac said that limited inventory is continuing to impact home sales and prices. Home sales are predicted to modestly increase to 6.14 million, according to the forecast.

Mortgage rates are expected to average 4.6% for the rest of 2018. Slower home sales growth and decreasing refinance activity are expected to cause single-family first-lien mortgage originations to fall 8% to $1.66 trillion this year.

Lastly, the labor market and the U.S. economy are expected to climb 2.8% this quarter and 2.7% this year, ultimately increasing consumer spending and business investment.

“The good news is that the economy and labor market are very healthy right now, and mortgage rates, after surging earlier this year, have stabilized in recent months, Khater said. “These factors should continue to create solid buyer demand, and ultimately an uptick in sales, in most parts of the country in the months ahead.”

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