Closing Complex Loans Faster With a Digitized Client Workflow

Join us for a discussion on changes in market demographics, suppliers and how focusing on customer experience and a few simple steps during the mortgage loan process can close deals 3x faster.

engage.marketing event: All eyes on purchase

To help power your business forward, we’re bringing together the smartest minds in purchase mortgage marketing to share the insights, tactics and strategies that set leaders apart.

Home appraisal’s ugly history and uncertain future

This is Part I of a deep dive into the home appraisal industry. Today we explore the origins of the appraisal industry and its current lack of diversity.

The digital journey starts at acquisition

Investments in digital acquisition directly contribute to a lender’s ability to maximize future profitability and allow them to remain competitive. Download the white paper for a playbook to building a tech-enabled acquisition strategy for growth.

MortgageReal Estate

Harvard: There’s a housing shortage, and it’s eroding affordability

Tight supply is putting the squeeze on prices

There’s a shortage of homes on the market, and it’s driving up house prices and rents, especially for average earners living in high-cost markets.

This is the big takeaway from Harvard’s massive study from the Joint Center for Housing Studies released this week on the state of the nation’s housing market.

The gist is that the housing market is constrained by production that has been below historical levels for more than a decade.

In late 2018, the housing market lost steam as interest rates rose, and new construction, home sales and home price appreciation all slowed. Even as rates came back down in early 2019, things did not let up.

The report calls the housing market’s 2018 cooldown “somewhat surprising” given the strong state of the economy at that time. It pinpoints the lack of affordable housing as the “primary culprit.”

“The tight supply of homes for sale is keeping the pressure on prices in much of the country, while high land prices, labor shortages, and restrictive land use policies limit development of moderate-cost housing,” the report states.

At the same time, the nation’s homeownership rate has been trending upward, jumping 2.8 million from 2016 to 2018. This puts added pressure on the market, as more competition for a limited stock drives house prices upward.

The report questions whether the market is capable of supplying housing that is affordable for most households.

“If current housing supply trends persist, house prices and rents will continue to rise at a healthy clip, further limiting the housing options for many,” it states, suggesting that public and private sectors convene to address the issue.

“To ensure that the market can produce homes that meet the diverse needs of the growing U.S. population, the public, private, and nonprofit sectors must address constraints on the development process,” the report states. “And for the millions of families and individuals that struggle to find housing that fits their budgets, much greater public efforts will be necessary to close the gap between what they can afford and the cost of producing decent housing.”

“While demographic trends should support a vibrant housing market over the coming decade, realizing this potential depends heavily on whether the market can provide a broader and more affordable range of housing options for tomorrow’s households,” it states.

Most Popular Articles

Fannie Mae, and the housing market’s inflation problem

Another month of steadily increasing home prices and insatiable demand led Fannie Mae’s Economic and Strategic Research Group to alter many of its 2021 predictions – in particular, its outlook on the symbiotic relationship between the housing market and inflation measures.

Jun 16, 2021 By

Latest Articles

Stewart Title merges Nevada offices

Title insurance giant Stewart Title announced that it is combining its two Northern Nevada divisions, Legacy Division and Western Division.

Jun 17, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please