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.

Investments

WSJ: Fannie and Freddie-backed homeowners are deeper in debt

Are rising DTI levels a concern?

According to Ben Eisen, writing in the Wall Street Journal, Fannie Mae and Freddie Mac are increasingly backing loans to borrowers who have heavier debt loads, highlighting questions about mortgage risk as policymakers debate ways to change the system.

Eisen writes that, according to IMF data, the share of homeowners with high debt-to-income ratios above 43% has nearly doubled since 2015. 

From the article:

The backing of these loans opens up a debate about the government’s role in the housing market. Some say cheap, federally backed financing has made credit available for millions of borrowers who otherwise might not have had a shot at homeownership. Others say that more-indebted borrowers are riskier, and that their purchases may be accentuating a rise in home prices that in many areas has outstripped median incomes.

Those contrasting views are spilling into the open as policy makers once again try to overhaul the housing-finance system. Mark Calabria, the recently confirmed head of the Federal Housing Finance Agency, which oversees Fannie and Freddie, said he plans to prioritize addressing this issue, though he hasn’t said specifically what he wants to do. A White House memo on housing-finance reform, released in March, also mentions it.

 

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3d rendering of a row of luxury townhouses along a street

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