December Case-Shiller Results and January Forecast: Why 2018 Looks A Lot Like 2017
The familiar patterns in the housing market that emerged in the second half of 2017 – lots of demand from home buyers, limited supply of homes available to buy, quickly rising prices and slow but steadily deteriorating affordability – are continuing to shape the start to 2018 as well.
How Mortgage Payments Vary With Interest Rates, Loan Products
As discussions evolve around reforming mortgage giants Fannie Mae and Freddie Mac (so-called GSE reform) -- the two institutions largely responsible for enabling the affordable 30-year mortgage in the first place -- it's worth taking a look at how monthly mortgage payments on the typical U.S. home would change if rates rose and/or other mortgage products became more popular.
Mortgage Comparison Tool: A Glimpse at Life Without the 30-Year Fixed-Rate Mortgage
Hoping to reduce taxpayers’ risk, policymakers are considering changing the mortgage guarantee, which may lead to a shift toward adjustable-rate products, higher fixed interest rates and/or shorter-duration loans. Here's a comparison tool that shows how sensitive house payments are to changes in interest rates and loan duration.
Rapid Reaction: January New Home Sales
January new home sales fell 7.8 percent from December and 1 percent from a year ago, to 593,000 units (SAAR) -- not what the market needed or wanted to see after an equally disappointing existing home sales report.
Experts: Changes to GSE Affordable Housing Goals Likely to Reduce Lending to Underserved Groups
Experts predict replacing Fannie and Freddie’s Affordable Housing Goals will result in decreased lending to underserved borrowers. They are split on whether potential changes will improve taxpayer protection or provide better targeting for borrowers in need.
Home Values Grow at Slowest Annual Pace in 15 Months (January 2018 Market Report)
January saw the slowest growth since November 2016 and follows a year in which homes regularly gained more than 7 percent from the prior year – including a 7.6 percent jump in May 2017, the fastest pace since June 2006 in the midst of the housing bubble.
As Mortgage Rates Flatten, Markets Anticipate Federal Reserve Speeches
Markets also are likely to focus on leadership changes at the European Central Bank, which could move European monetary policy toward a less accommodative stance and push up interest rates globally.
January Existing Home Sales: An Ominous Start to 2018
Sales were down 4.8 percent annually, the largest year-over-year drop since November 2015. The median seasonally adjusted price of existing homes sold in January surged to a new all-time record, increasing by 1.8 percent to $255,500, up 5.7 percent over the year.
Rapid Reaction: January Existing Home Sales
January existing home sales fell 3.2 percent from December to 5.38 million (SAAR), the second weak month in a row. January sales were down 4.8 percent from a year ago, the largest annual decline since August 2014.
What If the Housing Bust Didn’t Happen?
If the recession and housing bust had never happened, the median U.S. home would have been worth about $214,500 as of the end of 2017 -- $8,200 more than the actual value of $206,300.
