Mortgage rates surged this week, marking their highest point in nearly two months and adding fresh pressure on an already fragile spring homebuying season. The spike, driven largely by rising bond yields and escalating market uncertainty, is threatening to sideline more prospective buyers just as the housing market was showing signs of modest recovery.
As the U.S. housing market slows under the weight of high interest rates and shrinking affordability, major banks are lobbying regulators for a revamp of mortgage rules they say are outdated and overly restrictive. Industry leaders argue that simplifying the current framework could ease lending bottlenecks and bring more borrowers back into the market—especially first-time buyers and lower-income households. The push comes as home sales continue to slump and mortgage originations sit well below historical norms.
A sharp uptick in mortgage delinquencies among first-time homebuyers is raising red flags for the housing industry, particularly for borrowers using government-backed loans. These trends suggest that some of the most financially vulnerable homeowners are increasingly struggling to stay current on their payments, amplifying concerns about affordability, inflation, and broader market risk.
The Trump administration’s revived plan to privatize Fannie Mae and Freddie Mac is stoking fresh debate in Washington and on Wall Street, with experts warning that such a move could push mortgage rates higher and pose new challenges for homebuyers across the country. At the heart of the discussion lies a pivotal question: Can the U.S. housing market handle a shift away from government-backed mortgage guarantees?
The U.S. homebuilding sector found a modest silver lining in former President Donald Trump’s latest wave of tariff announcements. While much of the construction industry braces for higher costs, one crucial material—Canadian lumber—was notably spared from additional duties. That exemption, however, isn’t enough to ease broader concerns across the housing market, where rising costs and slowing demand are already testing builders' limits.
The Federal Housing Finance Agency (FHFA) along with Fannie Mae and Freddie Mac announced a pair of new eligibility requirements at the end of August that will go into effect over the next two years. Fannie and Freddie have issued updates to the Private Mortgage Insurer Eligibility Requirements (PMIERs), which are financial and operational standards that private mortgage insurance companies must meet to provide insurance on mortgage loans acquired by the enterprises.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
The latest data shows that housing affordability may be slightly improving, but consumer sentiment about the housing market continues to be pessimistic. Fannie Mae reported earlier this month that its monthly Home Purchase Sentiment Index® (HPSI) decreased in July, with only 17 percent of consumers believing it's a good time to buy a home and 65 percent saying it’s a good time to sell.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
Fannie Mae and Freddie Mac are in a period of maintaining business levels, as they recently reported second quarter financials that were equivalent to the previous quarter and only slightly below the second quarter of 2023. Fannie Mae announced financial results that included $4.5 billion in net income for the quarter, an increase of $164 million from the previous quarter and down about $500 million from the second quarter of 2023.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
The final step toward the passing of a new rule regulating artificial intelligence models for real estate valuations and appraisals was completed earlier this month, coinciding with a report that home appraisals are higher than sales prices in half of home sales. Corporate Settlement Solutions (CSS), which provides commercial and real estate settlement solutions, recently released a report that shows home appraisals were higher than sale prices 51 percent of the time in the first half of 2024.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
The Federal Housing Finance Agency (FHFA) has published updated aggregate statistics from the National Mortgage Database (NMDB®) and launched the NMDB Aggregate Statistics Dashboard—a new data visualization tool for the NMDB Outstanding Residential Mortgage Statistics. “The release of updated data will allow stakeholders to better understand emerging mortgage and housing market trends,” said Director Sandra L. Thompson.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
The Federal Housing Finance Agency (FHFA) has given conditional approval for Freddie Mac to purchase certain single-family closed-end second mortgages. In what the agency is calling a “limited pilot,” some homeowners now have another option for accessing home equity without surrounding the low mortgage rate they may have locked in several years ago.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
Consumer attitudes toward homebuying conditions, as expressed by Fannie Mae’s monthly Home Purchase Sentiment Index, reached an all-time survey low in May. Housing affordability has risen to become one of the top issues in the upcoming presidential election, and one survey shows it’s the number-one issue among the youngest generation.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
A month after proposing a new second-mortgage offering, Freddie Mac and the Federal Housing Finance Agency (FHFA) are finding more detractors of their proposal than boosters. FHFA sent a notice of a proposed new single-family closed-end second mortgage to the Federal Register, which would enable Freddie Mac to purchase the new product.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
Fannie Mae is re-evaluating a Selling Guide update related to property insurance that is scheduled to take effect June 1. In February, Fannie announced a clarification to its Selling Guide related to monitoring and verifying property insurance coverage. Fannie said these were long-standing policies “intended to ensure the borrower has sufficient property insurance coverage in the event of a loss.”
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
Those looking for an indication when Fannie Mae and Freddie Mac may exit conservatorship did not receive one during recent Congressional testimony from the director of the Federal Housing Finance Agency (FHFA). Under the Donald Trump administration, the end of conservatorship was a matter of when, not if. That has changed somewhat during the Joe Biden administration.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
Written By: Bonnie Wildt
I have said it before and I will say it again and that is, do not believe everything you hear or read for that matter. In this particular instance I am referring to AUS Findings. I have had countless conversations with processors and loan officer who want to know why I am asking for documentation that the AUS findings have clearly stated wasn’t needed or worse, they can’t believe I am turning a loan down that has an Approve/Eligible. So here it is again and pay particular attention to the details because just because you have an Approve/Eligible or Accept doesn’t necessarily mean you have a done deal.