MBA Newslinks Archive

“Mr. Otting’s background in banking and mortgage finance will provide strong leadership at FHFA until a new Director is confirmed. We look forward to working with him on the variety of important issues facing the housing markets.”–MBA President and CEO Robert Broeksmit, CMB, on the White House announcement Friday that it intends to appoint Joseph Otting as Acting Director of the Federal Housing Finance Agency.

“It’s looking increasingly unlikely that we’ll see a meaningful upward surge in inventory any time soon. Building activity has been sluggish at best. And potential sellers may now be thinking twice about listing their home for sale in a rapidly rising interest rate environment, when a similar home to the one they’re already in–let alone a larger or more expensive one–is likely to cost them more per month. This is a step in the right direction, but there’s a long march to go.”–Zillow Senior Economist Aaron Terrazas.

“Access to affordable, sustainable housing is a necessity for all Americans, and as such, it requires a system of financing that is robust in all parts of the country, through all parts of the credit cycle. Legislative reforms of the Enterprises offer the best path to reach this desired end state.”–MBA President and CEO Robert Broeksmit, CMB, in testimony this morning before the House Financial Services Committee.

“The Federal Reserve has changed its tune with respect to the future path of hikes for the federal funds rate. As highlighted in recent public remarks, Chairman Jerome Powell and the FOMC believe the fed funds rate is now quite close to the neutral level–the level which would keep the economy at full employment and stable inflation.”  –MBA Chief Economist Mike Fratantoni.

“Despite mortgage rates falling across the board last week to their lowest levels in three months, mortgage applications also declined, as more potential borrowers likely stayed away because of ongoing financial market volatility and economic uncertainty.”–Joel Kan, MBA Associate Vice President of Economic and Industry Forecasting.

“The Associations strongly support the Agencies’ efforts to simplify the rules in order to reduce unnecessary complexity and eliminate provisions that create unnecessary burdens and hinder financial stability and economic growth,” the letter said. “However, it is frustrating that the Proposal has not been finalized, even after almost a year after the comment period closed.”–From an MBA/ICBA letter to federal agencies asking action on a regulatory compliance simplification proposed rule issued in 2017.

“With a new Congress ready to take office in January 2019, ensuring HUD has the right leaders in place is a key consideration. Mr. Appleton will provide HUD with sound leadership that will enable the Department to move forward on important initiatives.”–From an MBA/trade group letter to Senate leaders urging approval of Seth Appleton as HUD Assistant Secretary.

“The tide has turned. Sellers are now competing for buyers, but they haven’t all realized it yet. Sellers who have adjusted their price expectations downward are still finding plenty of willing buyers. Sellers holding out for high prices are contributing to declining home sales and growing inventories. We see few signs that buyers are likely to reward their patience.”–Redfin Chief Economist Daryl Fairweather.

In high-cost areas of the country, FHA’s loan limit ceiling will increase to $726,525, from $679,650. FHA will also increase its floor to $314,827 from $294,515.

“Despite a still-strong job market and recent declines in mortgage rates, affordability challenges continue to hold back sales activity, as wage growth still lags behind home-price growth. Additionally, recent stock market volatility and some economic uncertainty likely also contributed to the pullback in home sales in November.”–MBA Associate Vice President of Economic and Industry Forecasting Joel Kan.