GSEs

Prospective spring home buyers have responded to a second straight week of falling rates according to Freddie Mac, as they pounce on the nation’s limited housing supply, and have driven app volume upward.

The Home Purchase Sentiment Index published monthly by Fannie Mae reported yet another increase to its highest level since May 2022, mainly due to greater consumer optimism about mortgage rates.

Both GSEs helped promote sustainable homeownership and rental opportunities nationwide in Q1 of 2023, amid an uncertain economic quarter highlighted by continued Fed rate hikes and several bank failures.

“The increase in down payment assistance for several consecutive quarters represents growing opportunities for homebuyers that have been traditionally underserved,” said DPR Founder and CEO Rob Chrane.

After a five-week string of declining rates, mortgage rates rose modestly for the second consecutive week, on the eve of the GSE’s enacting changes to loan-level price adjustments geared toward tackling housing affordability challenges nationwide.

FHFA Director Sandra L. Thompson has issued a new statement addressing recent misconceptions about mortgage pricing. Click through to read her comments on the issue.

Freddie Mac reports the 30-year fixed-rate mortgage took a turn upward this week, rising 12-basis points week-over-week as investors responded to more healthy economic indicators and an uptick in bond yields.

“With the spring buying season underway, lenders are grappling with the threat of a recession and tighter overall financial conditions following the recent bank failures,” said Joel Kan, MBA’s VP and Deputy Chief Economist.

“Unsurprisingly, consumers also expressed apprehension about the direction of home prices,” said Mark Palim, Fannie Mae VP and Deputy Chief Economist.

Even as mortgage rates edge closer to the 6% mark, homebuyers nationwide are faced with the prospect of low inventory, with new listings having fallen 21.8% year-over-year nationwide.