Lunch & Learn: Are appraisals the next big opportunity in mortgage fulfillment?

This Lunch & Learn for mortgage lenders will explore the evolution of the appraisal process as well as opportunities for innovation.

HousingWire Annual Virtual Summit

Sessions from HousingWire Annual 2021 are going to be virtually streamed on October 25. Register now for FREE to tune into what housing industry leaders had to say this year!

How Freddie Mac is addressing affordable housing challenges

Freddie Mac is focused on addressing limited access to credit, housing inequalities, creation and preservation of affordable housing supply and advancement of homeownership education.

How to increase minority homeownership?

Today’s HousingWire Daily features a roundtable discussion from HousingWire’s Lunch & Learn series that looks at “Unpacking the lender’s vital role in increasing minority homeownership.”

Politics & MoneyReal Estate

Home sales beat estimates: no housing crash in sight

Demographics and low mortgage rates are a dynamic duo

HW+ home on street

The National Association of Realtors reported 5.99 million home sales for July, which was an excellent beat of estimates and a dagger into the hearts of the 2021 housing crash crew. Mother demographics and low mortgage rates, two things that have been transparent to human beings for a long time, are powerful economic forces. Both together make it very difficult for an epic housing crash in sales to happen, especially when the years 2008-2019 had the weakest housing recovery ever.

We were never working from an elevated level of sales in the existing home sales market as we ended 2020 with just 5,640,000, which was only 130,000 more than 2017 levels. The notion that sales would simply collapse by 2-3 million levels like what we saw from the peak of the housing bubble year at 7,260,000 to as low as a bit under 4 million is entering internet conspiracy levels. As I showed here, the market we have currently isn’t 2008 all over again.

I suggest after 10 years of being wrong on the housing crash call and now needing a 86% home price crash to just get back to 2012 levels, my best advice is to get some therapy for Housing Bubble Boy 2.0 sickness. You still have time, life is worth living free from this disease.

The sales data trend, which I have always believed is the best way to look at demand using the purchase application data as a reference, has been in line with what I talked about back in March of this year. As I wrote then, the rule of thumb I am using for 2021 is that existing home sales, if they’re doing good, should be trending between 5,840,000-6,200,000. This, to me, would be considered a good year for housing.

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