In the list of uncertainties ranging from new tax rates and laws to the yet-to-be-known stimulus that will be passed by congress, add to that where home sales, median prices and lending volumes are heading. Once again, Fannie Mae and the MBA agreed to disagree in their respective monthly forecasts in January 2021. Existing Home …Read more
As the pandemic progresses, it appears more evident that the housing sector is providing buoyancy to the U.S. economy as record low interest rates drive housing demand and reduce monthly payments for millions of households able to refinance their home mortgages. Following is a summary of the latest August 2020 forecasts from Fannie Mae and …Read more
The Federal Reserve yesterday, based on concerns of the potential of pandemic, cut their targeted Fed Funds Rate (the rate that one bank borrowers over-night reserves and funds from another bank) by 50 basis points (0.5 percent) to a range from 1.0 percent to 1.25 percent. This was the first time since 2008 that the …Read more
As the Federal Reserve’s Open Market Committee prepares to meet today, interest rates and where they are likely going are making headlines. Interest rates make up part of the throttle linkage for residential lending. Shown in the table is the latest forecast for 30-year conventional mortgage rates as reported by Fannie Mae, Freddie Mac and …Read more
Ever get that Déjà Vu all over again feeling – like you have been there and done that? Déjà Vu is French for Already Seen –and that appropriately describes what is going on in housing markets and interest rates today. Up front we need to recognize that interest rates in recent years and today are …Read more
We economists have a secret rule when making forecasts on interest rates: give a rate or give a date, but never give both at the same time because you are going to be wrong. Fortunately, Fannie Mae, Freddie Mac and the MBA update their quarterly and annual forecasts monthly for residential lending volumes – …Read more
As we economists say, “forecasting is difficult, especially the future.” Fortunately, Fannie Mae, Freddie Mac and the MBA update their quarterly and annual forecasts monthly for residential lending volumes – both refinance and purchase transactions. The forecasts typically span a three-year period, currently from 2017 to 2019. Freddie Mac did not breakout the quarterly forecast …Read more
As stated last month: As we economists say, “forecasting is difficult, especially the future.” Fortunately, Fannie Mae, Freddie Mac and the MBA update their quarterly and annual forecasts monthly for residential lending volumes – both refinance and purchase transactions. The forecasts typically span a three-year period, currently from 2016 to 2018. The lagging year (2016 …Read more
Each month Fannie Mae, Freddie Mac and the MBA forecast residential purchase and refinance lending volumes years in advance on a quarterly basis. While these forecasts typically do not initially agree, over time they converge to a consensus. These lending volumes impact any and sometimes all real estate related service providers in their incomes ranging …Read more
Interest rates continue to escalate post-election, with the 30-year fixed-rate conventional mortgage hitting 4.03 percent in week ending November 23, 2016 – the first time above 4.0 percent this year and also the highest rate recorded thus far in 2016. The last time that 30-year rates traded at this or a greater level was July …Read more