MBA Newslinks Archive

“The current application of Davis-Bacon wage rates to HUD/FHA-financed projects creates substantial barriers to the development of affordable rental housing, for example, by inflating costs and adding unwarranted administrativecomplexity.”–From an MBA white paper addressing inefficiencies in the Davis-Bacon Act and offering recommendations to improve it.

“MBA congratulates Brian Montgomery on this well-deserved nomination. During his current tenure as FHA Commissioner and Acting Deputy Secretary, Brian has been integral in developing policies that improve opportunities for homebuyers and renters. With his expertise and knowledge of the housing industry, we are confident that Brian will do an excellent job serving alongside Secretary Carson and other members of the Administration.”–MBA President & CEO Robert Broeksmit, CMB, on the Administration’s nomination of Brian Montgomery as HUD Deputy Secretary.

“Credit availability increased slightly in September, driven by a 5 percent increase in the supply of jumbo loans. The jumbo index, which grew from a combination of lower credit score requirements, non-QM loans, and investor products, is now at a record high since tracking began in 2012. Meanwhile, the trend of tightening credit availability in conforming and government programs continued over the past few months, as both indices decreased.”–Joel Kan, MBA Associate Vice President of Economic and Industry Forecasting.

“Job growth was steady in September, but the drop in the unemployment rate and the upward revision of August’s data suggest that the labor market remains strong. This is in contrast to other data we have seen in the past week which suggest a sharp slowdown in U.S. growth. On net, this news should keep rates from falling further, as it casts doubt that the Fed will cut their rate target later this month. We still expect the Fed will drop rates one more time this year.”–MBA Chief Economist Mike Fratantoni.

“Instead of getting married or starting a family in their early to mid-twenties as was the norm in past decades, many are waiting until they are established in their careers. And the typical career trajectory has fundamentally changed since the 1960s as well–rather than climbing a corporate ladder, many are choosing to hop from one role or function to the next, often requiring a move to a new location.” –Sarah Mikhitarian, senior economist with Zillow, Seattle.

“We are seeing Millennial homeowners who may have purchased homes only a few years ago quickly taking advantage of the industry’s extremely low interest rates. We will also be watching to see if the increased purchase power from a lower rate environment enables some Millennials to make the leap into homeownership as we enter the fall home buying season.”–Joe Tyrrell, chief operating officer with Ellie Mae, Pleasanton, Calif.

“Although refinance activity slowed in September compared to August, the months together were the strongest since October 2016. The slight changes in rates are still causing large swings in refinance volume, and we expect this sensitivity to persist.”–Joel Kan, MBA Associate Vice President of Economic and Industry Forecasting.

“The millennial cohort has now entered the housing market in force and is already driving major changes in buying and selling patterns. Almost half of the millennials over 30 years old have bought a house in the last three years. These folks are increasingly looking to move out of urban centers in favor of the suburbs, which offers more privacy and a greener environment. Perhaps most significantly, almost 80% of all millennials are confident they will become homeowners in the future.”–Frank Martell, president and CEO of CoreLogic, Irvine, Calif.

“Strong borrowing and lending, coupled with relatively low levels of loan maturities, are helping to boost the amount of commercial and multifamily mortgage debt outstanding. All four major capital sources increased their holdings during the quarter. With strong demand expected to continue, debt levels are likely to climb even more and end the year at a new high.”–MBA Vice President of Commercial Real Estate Research Jamie Woodwell.

“The YIMBY Act will help communities recognize their own agency in the housing shortage and provide them with a framework for smarter policymaking. The bipartisan sponsorship of this bill demonstrates the congress’ commitment to innovative solutions to improve the lives of American families.”–From an MBA/trade group letter urging support for a House bill that would eliminate discriminatory land use policies and remove barriers that prevent production of housing.