Market Studies

There are few more concrete examples of supply-and-demand economics in action than the housing market. A new report looking at April numbers shows a spike in demand and a corresponding spike in median prices. The B-side, of course, is that while demand rises, inventory shrinks, fueling the current sellers’ market.

The latest Census data has Southern cities reigning supreme in terms of population growth. Ten of the top 15 fastest growing cities in the country are located in the South, with five in Texas alone. The West also saw growth, claiming four of the top spots.

The Federal Housing Finance Agency (FHFA) issued a Request for Input (RFI) Thursday for problems qualified Limited English Proficiency (LEP) borrowers face during the mortgage lifecycle. Per FHFA’s 2017 Scorecard for Fannie Mae, Freddie Mac, and Common Securitization Solutions, the GSEs must identify major challenges for LEP borrowers in accessing mortgage credit, analyzing potential solutions, and developing a multiyear plan appropriate for the Enterprises to support improved access. By better understanding the experience of LEP borrowers and those that serve them, the FHFA can successfully expand their statutory mandate.

The FHFA’s Q1 House Price Index Report was released Wednesday showing house prices up for the 23rd time in a row. Additionally, they were also up for the 21st time in a row year-over-year. Though this seems positive, Q1’s rate of growth nationally was minimal compared to the quarterly growth rates in years past.

According to a new report, first-time homebuyers now make up 60 percent of all home purchases. On GSE loans, first-time buyers comprise 47 percent of loans, while on FHA loans, they account for 82 percent. The uptick is likely due to an improved economy, lower unemployment, rising income, and more new home construction

According to a new report, FDIC-insured banks saw a jump in income over the first quarter. The institutions reports a 12.7 percent rise in revenues over the year. Total loan balances at FDIC banks are slowing down.

The total national loan delinquency rate (loans 30 or more days past due, but not in foreclosure), spiked 13 percent from in April from March putting a little over 2 million properties past due. However, according to experts, there is no need for alarm. The rise is primarily due to the calendar with April ending on a Sunday.

Builders and developers have reported that credit conditions for acquisition, development, and single-family construction (AD&C) have been easing in the past few months. Eased lending standards are linked with growth in the volume of residential construction loans held at banks, and by extent, the growth in residential construction as a whole. Sales of brand-new homes are expected to jump 10.7 percent this year as the historically low inventory has been pushing for increased construction.

The most pressing problem facing the housing industry today is the tight inventory and millennials may be partly to blame. As many young potential buyers move into cities and away from the suburbs, housing construction has been notoriously weak. Cities like New York, San Francisco, Boston, and Los Angeles have seen their suburban areas shrink.

On Wednesday, at 9 a.m. EST, the Federal Housing Finance Agency (FHFA) will release its House Price Index (HPI) for March. The Index covers single-family housing, using data provided by Fannie Mae and Freddie Mac. Previously, the FHFA reported in its February HPI that home prices rose 0.8 percent month-over-month. In the report, January’s former unchanged index was revised to a 0.2 percent increase.