GSEs

Fannie Mae’s latest Home Price Index has found that the tension between the reduced supply of homes available for sale and lower mortgage demand will impact home prices in 2023.

Fannie Mae’s latest Home Purchase Sentiment Index reverses course, picking up from the previous month’s lows.

Freddie Mac reports that 2023 has begun with a second consecutive week of mortgage rate hikes, with app activity sinking to a quarter-century low as high rates continue to weaken the housing market.

Mortgage rates trended upward to close out the year, as Freddie Mac’s Chief Economist forecasts the housing will remain weak throughout the winter.

Freddie Mac reports the fixed-rate mortgage sliding for the sixth straight week, with the downward trend in rates resulting in a rise in refis, offsetting a week-over-week decrease in purchase activity.

Fannie Mae and Freddie Mac will now need Federal Housing Finance Agency approval—and possibly public comment—before offering new products, in order to ensure safety and soundness standards.

Fannie Mae’s Economic & Strategic Research Group now forecasts recessionary conditions taking a hold of the market during Q1 2023, even after forecasting better fourth-quarter numbers due to strong GDP and personal consumption figures.

With the dip in mortgage rates now surpassing a month, a slight uptick in mortgage apps has led to a recent stabilization in purchase demand.

Despite a minuscule rise in home-purchase sentiment for the month of November, Fannie Mae’s survey finds near-record pessimism and predicts slow sales heading into 2023.

Though the housing industry may not be able to pinpoint the next widescale impactful event, developing a well-grounded plan can help navigate it, mitigate risk, and get homeowners back on track.