Tag Archives: Freddie Mac

The S&P CoreLogic Case-Shiller National Home Price NSA Index for August 2022 reported home price gains continued to slip, as inflation hit a four-decade high, resulting in less money in the pockets of Americans and diminished budgets.

With home sales on the decline and mortgage application volume falling to a 25-year low, Redfin reports sellers’ time on market has doubled from the spring as buyers wait for both prices and rates to come down.

Mortgage rates continue to force down application volume, with Freddie Mac reporting rates moving slightly upward yet again this week, adversely impacting the housing market as demand dwindles.

“It turns out that the core of the GSE business model—which protects the availability of the 30-year fixed-rate mortgage for the typical American homeowner—was really quite effective within the complex system of U.S. housing finance and unexpectedly hard to replace,” said Don Layton, former CEO of Freddie Mac, in a new op-ed.

Single-family starts in 2022 are projected to hit an 11-year low, as builder confidence falls to its lowest level in more than a decade.

Redfin reports that housing market activity is plunging further this fall than it did over the summer, with increased concern over 20-year high mortgage rates compounded by a volatile U.S. economy.

After a slight break last week, Freddie Mac reports the fixed-rate mortgage inched closer toward the 7% mark, as recessionary concerns and housing affordability continue to drive down housing demand.

On the heels of the Fed’s rate hike, mortgage rates edged near the 7% mark last week but trended back downward this week amid ongoing economic uncertainty.

New research from HUD reveals the policy implications regarding small-dollar mortgages, which comprised less than 3.5% of overall home purchase originations in 2020.

The last time mortgage rates hovered near the 7% range was two decades ago, as continued Fed actions to ease inflation have forced the fixed-rate mortgage to 20-year highs.