MBA Newslinks Archive

“The job market is quite strong, and even though wage growth has accelerated, inflation has not picked up and shows no signs of doing so. With that combination, Fed officials are comfortable leaving rates at their current level. If inflation were to increase, they might be forced to hike again, but it appears that we are at the end of the rate hiking cycle.”–MBA Chief Economist Mike Fratantoni.

“Entry level housing supply remains weak and is likely hindering some would-be first-time buyers from finding a home. This–along with faster growth in the higher price tiers–is why the average loan application size has risen to a new high for three straight weeks.”–Joel Kan, MBA Associate Vice President of Economic and Industry Forecasting.

“Home builders are generally upbeat headed into the spring selling season. Builder sentiment has rebounded from the lows hit late last year, as builders are balancing optimism with pragmatism.”–Mark Vitner, senior economist with Wells Fargo Securities, Charlotte, N.C.

“Natural disasters are occurring with growing frequency and intensity, and across the United States residential development has expanded in recent decades closer and closer to vulnerable wildlands. The result is that more and more Americans are discovering–sometimes painfully too late–that their homes are at risk.”–Zillow senior economist Aaron Terrazas.

“Although downside risks persist, the most probable scenario is that the U.S. expansion will continue, the momentum will continue and 2019 will be another healthy year for the property markets.”–Cushman & Wakefield Chief Economist Kevin Thorpe.

“Last year recorded the largest annual increase in commercial and multifamily mortgage debt outstanding since the Great Recession, and the largest increase in multifamily mortgage debt on record. Growth in multifamily mortgage debt made up almost half the total increase in debt outstanding, and Fannie Mae, Freddie Mac and FHA collectively accounted for two-thirds of the multifamily growth. The GSEs, life insurance companies, the CMBS market and banks all increased their holdings of commercial and multifamily mortgage debt during the year.”–MBA Vice President of Research & Economics Jamie Woodwell.

“Purchase applications have now increased year-over-year for four weeks, which signals healthy demand entering the busy spring buying season. However, the pick-up in the average loan size continues, with the average balance reaching another record high. With more inventory in their price range compared to first-time buyers, move-up and higher-end buyers continue to have strong success finding a home.”–Joel Kan, MBA Associate Vice President of Economic and Industry Forecasting.

“The Consumer Financial Protection Bureau has shown an admirable willingness to listen to stakeholder concerns about how it can improve both its own practices and the regulations it is tasked with enforcing. The recommendations laid out in this Roadmap will further strengthen CFPB’s policies and ensure that all consumers are treated fairly and equally and have access to the quality sustainable products they deserve.”–MBA President and CEO Bob Broeksmit, CMB.

“The data on new housing starts has been particularly volatile over the past few months, driven by large swings in multifamily starts. Focusing on the single-family data, the 4.5 percent year-over-year gain is a promising sign for the housing market. Given the underlying strength in overall housing demand, slow and steady growth in new supply will support a modest increase in sales.”–Mortgage Bankers Association Chief Economist Mike Fratantoni.

“While we continue to see Millennials enter the housing market and exercise their purchase power, the uptick in refinances may indicate maturity among this generation who previously purchased a home and are looking for an opportunity to take advantage of lower monthly interest payments.” –Joe Tyrrell, executive vice president of strategy and technology with Ellie Mae, Pleasanton, Calif.