Best automation opportunities for loan processing

Join our expert panelists to learn how lenders can achieve their goals using the integration of intelligent document automation and RPA technology.

4 Strategies to Strengthen Customer Relationships

Discover the right strategies to execute fast-acting campaigns, track results and improve your bottom line – all while strengthening customer relationships.

HousingWire's 2021 Spring Summit

We’ve gathered four of the top housing economists to speak at our virtual summit, a new event designed for HW+ members that’s focused on The Year-Round Purchase Market.

An Honest Conversation on minority homeownership

In this episode, Lloyd interviews a senior research associate in the Housing Finance Policy Center at the Urban Institute about the history and data behind minority homeownership.

Mortgage

Fannie Mae: Housing market will stabilize in 2019

Summarizes 2019 projections: "The economy’s slowing, the Fed slows, housing plateaus"

After multiple rate hikes brought volatility into the housing market, 2019 should see things stabilize as the pace of rate increases slows, according to researchers at Fannie Mae.

In its 2019 Economic and Housing Outlook, Fannie’s Strategic Research Group said it continues to predict a slowdown in economic growth in the year ahead, projecting a 2.2% decline in growth that it attributes mostly to decreased consumer spending.

But researchers also said that the Federal Reserve’s “dovish” stance on rate hikes in 2019 will help stabilize home sales. They predict only one rate hike in the year ahead.

Considering these projections, the group defined its theme for 2019: “The economy’s slowing, the Fed slows, housing plateaus.”

Researchers said they expect mortgage rates to change little in the year ahead, continuing to hover in the 4.5% range, which they said will allow homebuyers to adjust to the new rate environment after last year’s volatility.

Combined with a projected slower pace of home price appreciation, stable rates should “support affordability and buyer confidence,” the researchers said.

“We expect single-family starts to grow modestly in 2019 as home buying firms. Although labor shortages will likely continue to frustrate builders, lower interest rates should help contain their borrowing costs,” the report stated.

It also noted that while multifamily construction is expected to slow in 2019, strong labor market conditions and Millennials will support to the sector.

In terms of refinance activity, the group said that while it increased its projections for refinance originations to $10 billion in 2019 and $6 billion in 2020, it predicts refinance volume will decline over the next two years.

Fannie Mae Chief Economist Doug Duncan said the path to economic growth in the year ahead faces more downside risks than upsides. Tight global conditions and the fading impact of fiscal policy has led to a prediction of moderate economic growth in the next couple of years, Duncan added.

“The Fed’s continued efforts to unwind expansionary monetary policies implemented during the recession have the potential to add to the headwinds facing the economy,” Duncan said. “However, we believe that contained price pressures should afford the Fed sufficient latitude to slow or pause rate hikes this year. This will allow the economy to continue growing, albeit at a slower pace, and housing to regain its footing.”

Most Popular Articles

Chopra warns of post-COVID housing market fallout

Rohit Chopra warned of housing market fallout and said he would focus on helping struggling homeowners at his Senate Confirmation hearing.

Mar 03, 2021 By

Latest Articles

CFPB delays QM compliance date to October 2022

The Consumer Financial Protection Bureau released a notice of proposed rulemaking on Tuesday to delay the mandatory compliance date of the Qualified Mortgage final rule from July 1, 2021 to October 1, 2022.

Mar 04, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please