MBA Newslinks Archive

“While we continue to analyze the market impact of FHFA’s guidance, we welcome the simplified framework and continued liquidity to the market.  We also appreciate FHFA’s recognition of the varied capital sources that finance multifamily rental housing and the emphasis on affordable housing as part of the new purchase cap regime. MBA continues to engage closely with FHFA on matters that impact the multifamily finance market and housing finance reform more broadly.” –MBA President and CEO Robert Broeksmit, CMB, on the Federal Housing Finance Agency’s announcement Friday to raise multifamily loan limits for Fannie Mae and Freddie Mac.

“Nearly half of the country’s renter households are cost-burdened, spending more than thirty percent of their income on housing. The Build More Housing Near Transit Act would spur the development of much-needed housing near transit locations, fulfilling critical transit, housing, economic development and environmental goals.”–From a letter signed by MBA and other trade groups in support of a House bill that would promote affordable housing near public transportation.

“Credit supply declined across the board in August, even as mortgage rates fell and application activity picked up, particularly for refinances. Last month’s decrease was the largest since December 2018, and also the first tightening we have seen for conventional loans all year. We anticipate some weakening of the job market in the year ahead as economic growth cools. It’s possible some lenders may be tightening credit in expectation of a slowdown.”–Joel Kan, MBA Associate Vice President of Economic and Industry Forecasting.

“Mortgages rates continued to decline over the holiday-shortened week, with the 30-year fixed rate decreasing five basis points and remaining near three-year lowsRefinances were essentially unchanged, up just 0.4 percent, but August overall was the strongest month of activity so far in 2019.”–Joel Kan, MBA Associate Vice President of Economic and Industry Forecasting.

“The low interest rate environment, coupled with still strong demand for commercial and multifamily assets, has pushed property values higher and increased demand for mortgages. At the beginning of the year, many economists, investors and others anticipated long-terms rates would currently be in the 3 percent range and rising–potentially putting pressure on property values and decreasing demand for debt. Instead, the 10-year Treasury yield is at approximately 1.5 percent, and many market participants are planning for rates to remain ‘lower for longer.’ The result is heightened demand and higher volumes.”–MBA Vice President for Commercial Real Estate Research Jamie Woodwell.

“As expected, given the global slowdown in economic growth, and increasing signs of a slowing in the pace of U.S growth, we are seeing job gains cool down a bit. August’s 130,000 increase in jobs was somewhat supported by federal government hires for the decennial Census, with private growth of only 96,000 jobs. We expect that job growth will continue to wane, and that there will be some upward pressure on the unemployment rate over the next year.”–Mike Fratantoni, chief economist with the Mortgage Bankers Association.

“We are gratified that the reports reflect many of the important priorities that MBA has long recommended, including protecting taxpayers from future bailouts, an explicit government guarantee on qualified mortgage-backed securities for single-family and multifamily loans, increased competition and consumer choice via potential additional guarantors and ensuring a level playing field for lenders of all sizes and business models. The reports recognize the need to better coordinate the roles of FHA and the GSEs. Such coordination must preserve affordable financing options for a wide range of borrowers and reflect the vital role FHA plays in the larger housing finance system.”–MBA President and CEO Robert Broeksmit, CMB, on the Trump Administration’s proposal for GSE reform.

“We’ve seen interest rates for Millennials drop consistently throughout 2019, but from April through June, the refinance market was essentially flat. In the months leading up to July, consumers believed that rates would continue to decrease, and they were correct. Now, Millennials are reaping the rewards and locking in historically low rates.”–Joe Tyrrell, chief operating officer with Ellie Mae, Pleasanton, Calif.

“Many households are not tapping the equity in their homes, despite the significant rise in home equity since the Great Recession, wage growth and low unemployment.”–Marina Walsh, MBA Vice President of Industry Analysis.

“The home-buying process is such a substantial financial event, and because most borrowers are confused about the ins and outs of the process, it’s natural for them to lean on the wisdom of others. With so many lender and product choices and no easy way to sift through them, tapping a trusted friend, colleague or professional advisor can help to quickly narrow the field and make the decision more manageable.”–MortgageSAT Director Mike Seminari.