Lunch & Learn: The State of Housing

As housing supply dwindles, affordability concerns grow while competition heats up the market. This Lunch & Learn will examine the current state of housing, featuring experts who have an eye on the market.

HousingWire Annual Virtual Summit

Join us on October 25 for a chance to see a handpicked selection of sessions from HousingWire Annual along with technology demos from the most innovative tech companies! Register now for FREE to experience HW Annual just like you were there.

How credit scores impact lenders’ pipelines in a purchase market

When a lender works with a borrower to improve their credit score, they are able to offer the most competitive rate and terms. Learn more here!

Volly’s Grant Moon on challenges facing veterans

In this episode of HousingNews, we are joined by Grant Moon who discusses the difficulties veterans face during the home-buying process and misconceptions about VA loans.

Mortgage

Low mortgage rates will push home lending to 12-year high

Lenders will fund $2.07 trillion of mortgages in 2019, MBA says

Low mortgage rates will push home lending this year to a 12-year high of $2.07 trillion, the Mortgage Bankers Association said in a forecast.

The volume for mortgages to purchase homes probably will total $1.27 trillion, the highest since the peak of the housing bubble in 2006, according to the group’s Nov. 20 forecast.

Refinancing probably will reach $796 billion, the most since 2016, MBA said.

Mortgage rates unexpectedly tumbled for the first nine months of 2019 as a slowing economy sent investors flocking to bonds. The monthly average rate for a 30-year fixed mortgage dropped to 3.61% in September before rising eight basis points in October, according to Freddie Mac data.

Even at 3.69%, the October rate is more than a percentage point lower than a year earlier.

Sales of existing homes probably will total 5.36 million in 2019, up from 5.34 million last year, the trade group said. New-home sales probably will reach 681,000, up from 615,000 in 2018, MBA said.

The average U.S. rate for a 30-year fixed mortgage likely will remain low at 3.7% in 2019 and 2020, the trade group said. That’s more than a percentage point lower than the 4.8% average in 2018, MBA said.

Home prices probably will gain 4.3% in 2019 from a year earlier, the group said. That’s a slower pace than the 6.1% annual increase in 2018.

MBA bases its home-price forecast on the Federal Housing Finance Agency’s index that measures sales of single-family homes with mortgages backed by Fannie Mae and Freddie Mac.

The homebuilding industry this year will have the highest output in more than a decade, according to the forecast. Builders probably will break ground on 878,000 new single-family homes, up from 873,000 last year, MBA said. That would be the most since 2007, according to data from the Department of Commerce.

Most Popular Articles

Fannie Mae: Mortgage rates and home prices will rise in ’22

Economists at Fannie Mae expect higher mortgage rates and home prices next year due to higher inflation, a tightening of monetary policy, and low home inventory

Oct 15, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please