The American Enterprise Institute (AEI) has launched a new initiative designed to mitigate the damage of housing's boom-and-bust cycles. Designed by AEI fellows Edward Pinto and Stephen Oliner, the newly unveiled Mortgage Risk Index measures the safety of lending the United States by gauging how mortgage loans would perform under stress (as defined by the experience of loans originated in 2007). According to the index, mortgage risk today is high compared to the "sound lending practices in place in 1990."
Read More »Economists Review Progress on Road to Recovery
The housing market has made great strides in recovering from the problems that ail it, but there are still major improvements that have to occur before it's back up to full health, Freddie Mac says in its latest Economic and Housing Market Outlook. The GSE's outlook focuses on four things the market needs to see before it can say the crisis is well and truly behind it: a healthy jobs market, mortgage delinquencies back down to historical averages, home prices consistent with payment-to-income ratios, and home sales more in line with historical norms.
Read More »Mortgage Rates Retreat on Weak Economic News
December's discouraging jobs report caused mortgage rates to pull back once again last week.
Read More »Fannie, Freddie Directed to Postpone G-Fee Changes
The Federal Housing Finance Agency (FHFA) announced Wednesday that it has directed Fannie Mae and Freddie Mac to delay implementation of planned changes to their guarantee fee (g-fee) structure.
Read More »Watt Sworn In as FHFA Director
After months of contentious debate, the Federal Housing Finance Agency (FHFA) finally has a new director.
Read More »FHFA’s 2013 Settlements Total Nearly $8B
The Federal Housing Finance Agency (FHFA) recovered nearly $8 billion last year in its pursuit of funds related to allegedly fraudulent loan sales to Fannie Mae and Freddie Mac.
Read More »Interest Rates Rise to Open New Year
Mortgage rates began 2014 with a round of increases, kicking off a trend many experts believe will continue through the rest of the year. Freddie Mac's weekly Primary Mortgage Market Survey shows the 30-year fixed-rate mortgage (FRM) averaging 4.53 percent (0.8 point) for the week ending January 2, up from the last week of 2013, when it averaged 4.48 percent. Meanwhile, Bankrate.com reported the 30-year fixed at 4.69 percent, a gain of 6 basis points.
Read More »Business Declines for Fifth Straight Month at Freddie Mac
Freddie Mac's total book of business decreased at an annualized rate of 2 percent in November compared to an annualized rate of 6.4 percent in October, according to the GSE's latest monthly volume report.
Read More »Watt: FHFA to Delay G-Fee Hikes
Rep. Mel Watt (D-North Carolina) is already making waves with an announcement that he plans to delay an imminent increase in guarantee fees (g-fees).
Read More »Mortgage Rates Little Changed in Wake of Taper Announcement
For all the Sturm und Drang surrounding discussions of the Federal Reserve slowing down its monthly asset purchases, mortgage rate movements were somewhat subdued this week leading up to Wednesday's announcement of cuts to the stimulus program. Freddie Mac reported small rate jumps for the week ending December 19, with the 30-year fixed-rate mortgage (FRM) average inching up to 4.47 percent (0.7 point) from 4.42 percent previously. Last year, the 30-year FRM averaged 3.37 percent.
Read More »