What to expect at HousingWire’s Spring Summit

The focus of the Summit is The Year-Round Purchase Market. Record low rates led to a banner year for mortgage lenders in 2020, and this year is expected to be just as incredible.

Increasing lending and servicing capacity – regardless of rates

Business process outsourcing and digital transformation are proven solutions that more companies in the mortgage industry are turning to. Download this white paper for more.

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.

MortgageReal Estate

Fannie Mae: Cheap mortgage rates will push 2019 refinancings to three-year high

Fixed rates probably will average 3.5% in Q4, according to forecast

Fannie Mae released a forecast on Tuesday that has 30-year fixed mortgage rates falling to an average of 3.5% in the fourth quarter from 3.6% in the current period, which will boost refinancings to a three-year high.

The nation’s biggest mortgage financier said refinancings probably will reach $699 billion in 2019, a 31% jump from 2018. Fannie Mae a month ago projected the average fixed rate would be 3.7% in the fourth quarter and annual refinancing volume would be $638 billion.

“The decline in our mortgage rate forecast since last month led us to revise upward our forecasts of refinance originations in both 2019 and 2020,” Fannie Mae said in a statement. “With rates declining almost an entire percent and a half from the peak last November, fewer homeowners have mortgages at rates lower than current market levels, meaning homeowners are less likely to feel `locked-in’ to their current mortgage.”

The overall view of the economy was pessimistic, even though the U.S. trade war with China hadn’t worsened in the last month.

“Businesses enjoyed at least a temporary respite from further escalation of U.S.-China and other trade disputes, but the month brought both confusion in the U.K. regarding the government’s Brexit plan and renewed evidence that the U.S. manufacturing sector is not immune to the global manufacturing slowdown,” the forecast said. “Perhaps more ominous, the month also brought signs that the resilience of consumer spending may be starting to wear thin, with weak growth in employment and a sharp turn downward in consumer sentiment.”

Fannie Mae lowered its outlook for existing home sales, though not by much. Resales of homes probably will total 5.324 million this year, a drop of 0.3% from 2018. A month ago, the forecast projected a 0.1% decline.

New-home sales got a small upward adjustment. Builders probably will sell 666,000 single-family homes in 2019, a gain of 7.9% from last year. Last month, Fannie Mae said it was expecting 659,000 sales.

“The lack of existing home inventory is supportive of new construction. We continue to expect single-family housing starts to move modestly upward through the remainder of the year, even as builders continue to face labor and land constraints,” the forecast said.

Most Popular Articles

Do higher mortgage rates mark the end of the refi wave?

As mortgage rates rose over the last week, refi activity fell. But millions of borrowers are still eligible if lenders can get them through the pipeline.

Feb 23, 2021 By

Latest Articles

Finicity launches verification service approved by GSEs

Finicity, an open-banking solutions provider that was acquired by Mastercard in October, announced that it is dipping further into the mortgage space.

Feb 25, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please