This month marks the 11th anniversary of the government takeover of the mortgage giants Fannie Mae and Freddie Mac. Last Thursday, The Trump administration released its long-awaited blueprint to reform the nation’s housing finance system and privatize GSEs Fannie and Freddie.
The plan consists of a series of recommended legislative administrative reforms aimed to create a competitive mortgage market with a limited government role, protect American taxpayers against future bailouts, and help guide Americans toward the path to homeownership.
Whether the government successfully recapitalizes these agencies and ends this conservatorship or not, loanDepot is uniquely and proactively positioned with capital and a world class capital markets team to benefit from any changes that may transpire.
Home Price Trends
- The CoreLogic HPI Forecast indicates that home prices will increase by 5.4% on a year-over-year basis from July 2019 to July 2020
- Over a quarter of Millennials have expressed interest in buying a home in the next year
- Connecticut and South Dakota were the only states to post declines in their year-over-year home prices
The expected reacceleration of home prices over the next year to just over 5% is caused by lower mortgage rates, making it more affordable for millennials to enter the market in the upcoming months. This increased demand for housing is the major driver for higher home prices, which we’ll likely continue to see rise for the foreseeable future.
Home Price Trends
Mortgage rates dropped again this week! The 30-year fixed mortgage rate averaged 3.49% for the week ending September 5, a slight drop from 3.58% prior week. By contrast, mortgage rates stood at 4.54% a year ago, almost a full percentage higher than today. The historic low for 30-year rates was 3.31% in November 2012.
If you or your clients are in the market for a purchase or refinance, this fall may be a favorable time to apply for one and save on interest overtime. Don’t forget to ask me about loanDepot’s mello smartloan™ and how it could help enjoy a faster, more secure, stress-free mortgage process.
If you have any questions, contact me anytime! I can help your clients explore the best mortgage option for both purchase and refinancing.