Why lenders should implement automation sooner than later

There are so many challenges keeping lenders up at night when it comes to these volume levels. Now more than ever, there is a need to add automation tools into the loan origination process that help lenders see a return on investment.

RealTrends 2021 Team Profitability Study

Brokerage firms have often speculated about how well teams perform from a profit and loss point of view, as well as how productive they are. In this research study, RealTrends answers these two big questions.

Mortgage Tech Virtual Demo Day

Tune in to our live Virtual Demo Day on December 1st at 10am CT to experience demos from the most innovative tech companies in the Servicing, Audit and Post-Close space.

What’s next for the maligned real estate appraiser?

In this episode of Houses in Motion, a series that is part of the HousingWire Daily podcast lineup, St. Petersburg, Florida-based appraiser Francois “Frank” Gregoire discusses issues in the appraisal industry.

MortgageReal Estate

Fannie Mae: Home sales to stabilize in 2019

Fannie predicts purchase mortgage originations to climb, but refinances to fall

Although economic growth is expected to slow in the new year, new data suggests the housing market will stabilize come 2019, according to Fannie Mae.

According to the company’s Economic and Strategic Group, full year GDP growth is predicted to slow to 2.3% in 2019, which is down from 2018’s projected 3.1%. Fannie Mae attributes this decline to the Budget Reconciliation Act, business investment growth and a widening trade deficit.

“We expect full-year 2018 economic growth to come in at 3.1% – an expansion high – before slowing markedly to 2.3% in 2019 and 1.6% in 2020," Fannie Mae Chief Economist Doug Duncan said. "Fading fiscal policy, worsening net exports, and moderating business investment all contribute to our projection that GDP growth will begin to slow in 2019.”

That being said, the report indicates that consumer spending will continue being the largest positive contributor for growth. Nevertheless, the GSE believes higher tariffs, trade uncertainty and rising interest rates and input costs will further constrain business fixed investment growth.

Fannie cites trade tensions between the U.S. and China as one of the most significant downside risks to the forecast, especially since stock market volatility could impact both consumer and business spending.

However, with the exception of accelerating inflation, both mortgage rates and home sales could stabilize in 2019, according to the ESR Group. In fact, Fannie predicts purchase mortgage originations will climb, but origination volumes will slow as refinances decline.

“The labor market continues to be one of the economy's high points, and with inflation hovering around the Fed's 2.0-percent target, we maintain our call that the Fed will hike rates once more in December and two more times in 2019, despite rising market expectations of fewer hikes amid stock market volatility,” Duncan continued. 

Duncan said if mortgage rates trend sideways next year and home price appreciation continues to moderate, improving affordability should breathe some life into the housing market.

“We also expect residential fixed investment to resume a positive growth trajectory amid continued rising housing starts and stabilizing home sales," Duncan said. "However, affordability is likely to remain an industry concern, particularly among first-time homebuyers."

Most Popular Articles

Will Omicron variant stop first Fed rate hike?

What does news about the spread of the new Omicron variant mean for mortgage rates? Lead Analyst Logan Mohtashami lays out what to watch.

Nov 26, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please