Christina Mlynski is a Reporter at HousingWire. She graduated with a bachelor's degree in news/editorial journalism from the University of North Texas, and previously worked for publications such as the Dallas Business Journal and Dallas Observer.
The housing market is a warrior. The industry has fought many battles, gotten pushed down — even trampled on — and yet, it always manages to find its footing to take on the days ahead. But the continued drag of employment numbers, coupled with housing demand constraints and extremely tight credit standards have led many industry experts to ask the question: Are we indeed on the path to yet another housing bubble?
Home prices continue to increase nationally. In fact, home prices jumped 12% on a year-over-year
basis in September 2013 compared to a year prior, posting the 19th consecutive monthly year-over-year gain in home prices nationally, according to the most recent CoreLogic Home Price Index report.
Before investors begin to sound the alarm on the program’s issues, market analysts expect eminent domain to remain an outlier risk, which, if widespread, could impact valuations drastically — although the likelihood is very low.
Housing stocks remained undeterred after Federal Reserve chair nominee Janet Yellen testified in front of the Senate Banking Committee Thursday. In fact, the HW 30 posted significant gains after Yellen showed no signs of taking her foot off the QE gas pedal.
The sales are an attempt by HUD to stem losses from its Mutual Mortgage Insurance fund, while providing an alternative for distressed borrowers that are on the brink of foreclosure. Even though investors did not meet the reserve requirements, the agency will carry on with business as usual.
With the recent turnover in leadership at the Federal Housing Finance Agency, we may be standing at the precipice of great change in the government’s role in supporting the mortgage market through Fannie Mae and Freddie Mac.