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.

Mortgage

As home prices increase, sellers have the upper hand

Housing sustainability can be achieved with "proper mix of home price growth and economic recovery," Duncan says

For the second consecutive month, Fannie Mae’s Home Purchase Sentiment Index, a composite index designed to track consumers’ desire to sell or buy a home, gained 3.5 points in September to 81.

Compared to this time last year, the HPSI is down 10.5 points, but has recovered more than half of its early pandemic-period decline when April’s HPSI hit its lowest reading since November 2011.

August’s HPSI survey revealed both a confident seller’s and buyer’s market, however, Fannie Mae reported September buyers showing more hesitancy. Despite real estate agents reporting record numbers, buyer morale fell 5% with 54% of respondents saying it is a good time to buy a home. Those who believe it is a bad time increased to 38%.

With the market heading into fall, sellers, on the other hand, proved more resilient as the percentage of respondents who said it was a good time to sell a home gained 8% to 56% in September.


NAMB leads brokers in advocating for consumer data privacy

The National Association of Mortgage Brokers has been advocating for mortgage brokers for almost 50 years. We spoke with NAMB’s President and NAMB’s lobbyist about the organization’s past and current legislative efforts.

Presented by: NAMB

According to Doug Duncan, senior vice president and chief economist at Fannie Mae, going forward, the wild card will be whether enough sellers enter the market to continue to meet the strong home-buying demand.

“The home purchase market requires the proper mix of home price growth and continued economic recovery to achieve sustainable levels of housing activity,” Duncan.

As of late, both sentiments may be showing confidence. On Oct. 2 the Labor Department reported the unemployment rate hit a six-month low of 7.9% and has continued to decline since April’s 14.7% record spike. According to the HPSI, the percentage of respondents who say they are not concerned about losing their job in the next 12 months increased from 78% to 83%.

As for home prices, CoreLogic’s Home Price Insights report revealed prices rising 5.9% year over year in August and estimate another 0.2% increase in September’s report.

Last month’s HPSI mirrored those expectations in housing price gains as the percentage of respondents who say home prices will go up in the next 12 months increased from 33% to 41%, while the percentage who said home prices will go down decreased to 17%. Duncan estimates the upwards pressure on home prices played the leading role in September’s good time to sell/bad time to buy narrative.

In August, Fannie Mae estimated the near-record low mortgage rates drove the HPSI’s recovery – now,  44% of respondents in September’s report believe those numbers will continue to hover in that sweet spot. However, the percentage of respondents who say mortgage rates will go down in the next 12 months decreased from 17% to 11%.

As of Oct. 1, mortgage rates hit their tenth consecutive week below 3% and the Federal Reserve expects low rates to remain through 2023.

This time last year, 51% of respondents thought the economy was on the right track – today 40% believe that same sentiment.

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