MBA Newslinks Archive

“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.

“[Mark Calabria] has a deep background in housing finance issues and we have enjoyed a good working relationship with him in his current and past roles. We look forward to working with him on a wide variety of housing finance issues, not the least of which is resolving the now-decade long conservatorship of Fannie Mae and Freddie Mac in a way that best serves borrowers, protects taxpayers and ensures equal access to stable and liquid secondary mortgage markets for a wide variety of single- and multifamily lenders, regardless of size or business model.”–MBA President and CEO Robert Broeksmit, CMB, on news that the Trump Administration intends to nominate Mark Calabria to be Director of the Federal Housing Finance Agency.

“That is the first decline we’ve seen since the housing recovery began, and its cause can be traced directly to softening home prices in some of the nation’s most expensive–and equity-rich–markets.”–Black Knight Executive Vice President Ben Graboske, on a decline in “tappable” U.S. home equity reported in the third quarter.

“The labor market remains quite strong, with the unemployment rate still near 50-year lows, and wage growth above 3 percent on an annual basis. With home-price growth also slowing and mortgage rates easing a bit, sustained wage growth of better than 3 percent certainly helps affordability conditions as we head into 2019. Overall, the economy is growing, but the rate of growth is slowing, and we expect that trend to continue over the next two years. This backdrop still provides solid support for consumer spending broadly, and steady demand for housing.” –MBA Chief Economist Mike Fratantoni.