MBA Newslinks Archive

“Sliding mortgage rates and builder discounts have led to an overall improving sales trend compared to last year’s sluggish pace. Amid strengthening demand for more affordable homes, builders have discounted prices and shifted focus towards more entry-level construction.”–Mark Vitner, senior economist with Wells Fargo Securities, Charlotte, N.C.

“Shrewd homeowners are locking in lower interest rates, which has driven the spike in refinance activity in July. And with the Federal Reserve cutting rates further, we expect to see continued activity as homebuyers are able to stretch their dollar and enter the market.”–Ellie Mae CEO Jonathan Corr.

“Falling long-term interest rates and sustained strength in commercial real estate markets lifted commercial and multifamily mortgage originations during the second quarter.” –MBA Vice President of Commercial Real Estate Research Jamie Woodwell.

“The small moves in rates and refinancing are potentially signs that lenders may be approaching capacity constraints as they continue to deal with the largest wave of refinance activity in three years.”–Joel Kan, MBA Associate Vice President of Economic and Industry Forecasting.

“A market can become highly competitive when buyers agree that home values will increase steeply in the future. If you believe home values will go up hundreds of thousands of dollars in the next five years, you will race to bid five or ten thousand dollars above asking price today. So, even though it may take a decade for Amazon’s HQ2 to grow the size of the Seattle headquarters, attracting high-earners and driving economic growth in the surrounding area, homebuyers and home sellers are already operating under the assumption that there will be strong demand for homes going forward.”–Redfin Chief Economist Daryl Fairweather.

“The drop in housing starts in July was driven by a sharp 17 percent decline in multifamily starts, especially in the Northeast. Nationally, single-family starts were up for the month and the year.”–MBA Chief Economist Mike Fratantoni.

MBA commends HUD for proposing these revisions to the annual lender certification and providing the opportunity for further stakeholder input. This is a vitally important step in HUD’s efforts to create an environment in which lenders can operate with clarity and certainty regarding both FHA’s requirements and potential penalties for noncompliance.” –MBA President and CEO Bob Broeksmit, CMB.

“The condominium market is a critical gateway to affordable homeownership, and MBA applauds the steps FHA has taken to increase borrowers’ accessibility to quality housing. The new guidelines, many of which MBA advocated for, will create more financing options that will help first-time homebuyers and low-to-moderate income borrowers. It will also provide lenders with much-needed clarity to promote safe, sustainable, and affordable lending. MBA looks forward to continuing to work with HUD on policies and procedures that promote FHA’s mission.”–Pete Mills, MBA Senior Vice President for Residential Policy and Member Engagement, on FHA’s announcement proposing changes to its Condominium Program.

“The unemployment rate remains quite low, but the national mortgage delinquency rate in the second quarter rose from both the first quarter and one year ago. The economy is slowing, and this poses the risk of further increases in delinquency rates.”–Marina Walsh, MBA Vice President of Industry Analysis.

“Lower mortgage rates have made buying a home more affordable, but not affordable enough for typical homebuyers contending these areas’ sky-high home prices and taxes. The homebuyers who are heading out of town in search of affordability don’t just want to save a few hundred dollars per month, they want to save thousands of dollars per month, and the only way to achieve that kind of cost savings is to move somewhere more affordable.”–Redfin chief economist Daryl Fairweather.