Best automation opportunities for loan processing

Join our expert panelists to learn how lenders can achieve their goals using the integration of intelligent document automation and RPA technology.

4 Strategies to Strengthen Customer Relationships

Discover the right strategies to execute fast-acting campaigns, track results and improve your bottom line – all while strengthening customer relationships.

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.

Politics & MoneyReal EstateMortgage

We need higher mortgage rates to cool the housing market

Housing 2021 isn't the housing bubble of 2005

The years 2020-2024 will have the best housing market demographics ever recorded in U.S. history, with the lowest mortgage rates recorded in history. When you have these two titans acting in unison, it can potentially accelerate real home prices in an unhealthy way. 

In 2020, the year of COVID-19, existing home sales ended at a respectable 5,640,000. That is roughly only 130,000 higher than the levels we saw in 2017. But sales should have ended the year more in the range of 5,710,000-5,840,000 if we stayed true to the trend line we had established by February 2020, before the COVID crash. We were and still are playing catch up to the lost demand during the COVID-19 shutdown period.

Purchase applications give a right direction trend 30-90 days ahead, and they are now averaging 12.8% year-over-year growth from last year. This is a tad better than I expected. 

So far this year, the weekly Mortgage Bankers Association purchase application data compared to last year looks like this: +3%; +10%; +15%; +16%; +16%; +17%. That is still growing a bit better than the peak rate of growth I was looking for at 11% before March 18 arrived, and all economic data went haywire crazy on year-over-year comps.

The last existing home sales print came in at 6,760,000; we are about to get another report this coming Friday. We are not trending at this sales level today, and I expect sales to moderate more toward the 6.2 million level or lower. However, my fear for the years 2020-2024 is that the built-in demographic demand would cause real home prices to grow too fast. We are seeing the early stages of this take hold.

The rest of this content is for HW+ members. Join today with an HW+ Membership! Already a member? log in

HW+ includes weekly long-form digital content, HousingWire Magazine, access to HousingStack, and free admission to all HousingWire virtual events.

Most Popular Articles

Chopra warns of post-COVID housing market fallout

Rohit Chopra warned of housing market fallout and said he would focus on helping struggling homeowners at his Senate Confirmation hearing.

Mar 03, 2021 By

Latest Articles

CFPB delays QM compliance date to October 2022

The Consumer Financial Protection Bureau released a notice of proposed rulemaking on Tuesday to delay the mandatory compliance date of the Qualified Mortgage final rule from July 1, 2021 to October 1, 2022.

Mar 04, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please