MBA Newslinks Archive

“Dr. Carson has demonstrated throughout his career that he possesses the intellect to understand and respond to complex challenges. We believe he will put those talents to good use, helping strengthen America’s housing market, promoting the production of affordable rental housing and improving communities nationwide.”–MBA President and CEO David Stevens, CMB, in an MBA letter to the Senate Banking Committee ahead of Ben Carson’s nomination hearing this morning.

“Ten-year Treasury yields fell the week following New Year’s Day as markets continue to adjust their expectations about the incoming administration and Federal Reserve policy. This pulled the average mortgage rate down for the second week in a row, this time by 7 basis points.” –MBA Vice President of Research & Economics Lynn Fisher.

“The reduction in the premium is a result of our industry’s and FHA’s shared commitment to quality underwriting, and consumers will benefit as result. Reducing the cost of FHA loans benefits borrowers, but other changes to reduce uncertainty for lenders would be required to truly invigorate the FHA program.”
–MBA President and CEO David Stevens, CMB.

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“Continued job gains at a moderating pace, rising wages and the unemployment rate at full employment signal a tight labor market, noting the case for further Fed moves remains in place.”–John Silvia, chief economist with Wells Fargo Securities, Charlotte, N.C.

“Although we expect to see interest rates increasing and inflation ramping up, the overall labor market is expected to remain strong. These effects will essentially offset each other and allow the overall national forecast to remain strong.”–Eric Fox, vice president of statistical and economic modeling with Veros Real Estate Solutions, Santa Ana, Calif.

“Originators generally see borrowing and lending volumes growing slightly, with just over half expecting potential regulatory and legislative changes to be positive for the market. The survey paints expectations of a strong, steady market in 2017.”–MBA Vice President for Commercial Real Estate Research Jamie Woodwell.

“Mortgage application volume typically drops sharply over the holidays. However, this year, as mortgage rates continued their upward climb reaching the highest levels in more than two years, overall application volume fell even more than the holiday slowdown would suggest, dropping 12 percent over the two-week period.”–MBA Chief Economist Mike Fratantoni.

“With the current high consumer confidence numbers and low unemployment rate, affordability trends do not suggest an immediate reversal in home price trends. Nevertheless, home prices cannot rise faster than incomes and inflation indefinitely.”–David Blitzer, Managing Director & Chairman of the Index Committee with S&P Dow Jones Indices, New York.

“Such a low rate of total satisfaction to be indicative of the decidedly mixed–if not downright depressing–results of this year’s survey. The largest group of respondents, 42 percent, indicated that they are just ‘somewhat satisfied.’ While not actively looking to replace their LOS, their responses indicate these lenders aren’t what you’d call ‘raving fans’ either. Over time we would expect many of these lenders to start to actively look for a new system.”–STRATMOR Senior Partner Matt Lind, on a company survey showing increased lender dissatisfaction with their current loan origination system.

“Rapid home price appreciation and tepid wage growth have combined to erode home affordability during this housing recovery, and the recent uptick in mortgage rates only accelerated that trend in the fourth quarter. The prospect of further interest rate hikes in 2017 will likely cause further deterioration of home affordability next year. Absent a strong resurgence in wage growth, that will put downward pressure on home price appreciation in many local markets.”–Daren Blomquist, senior vice president with ATTOM Data Solutions, Irvine, Calif.