Causes of the United States housing bubble

Buying and Selling a House in a Hot Market

Retrieved on: 
Monday, June 21, 2021

Q: What advice do you have for buyers, as they look to buy a home in the current housing market?

Key Points: 
  • Q: What advice do you have for buyers, as they look to buy a home in the current housing market?
  • In the spring of 2020, no one could visit a house for sale due to the pandemic quarantine.
  • By autumn of 2020, there was pent-up demand to buy houses that were not available in the traditional buying season of the spring.
  • Low interest rates made it possible for buyers to pay more for a house because low interest rates mean lower monthly mortgage payments.

Homebuyers on a $2,500 Monthly Budget Stand to Lose $23,250 in Spending Power as Mortgage Rates Rise from Record Lows

Retrieved on: 
Monday, March 8, 2021

To put it another way, the monthly payment on a $506,000 home would rise $110 with the higher mortgage rate, from $2,390 to $2,500.

Key Points: 
  • To put it another way, the monthly payment on a $506,000 home would rise $110 with the higher mortgage rate, from $2,390 to $2,500.
  • Partly as a result of record-low rates, home prices rose a near-record 14% year over year in January.
  • "Inflation has the potential to change every aspect of homebuyers' finances: It could change earnings, change budgets and change mortgage rates."
  • Share of homes for sale affordable on a $2,500 monthly mortgage budget, 2.75% interest rate versus 3.25% interest rate
    Change in share of homes affordable, 2.75% vs. 3.25%

Fannie Mae Prices $595 Million Multifamily DUS REMIC (FNA 2020-M53) Under Its GeMS Program

Retrieved on: 
Friday, December 4, 2020

Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans.

Key Points: 
  • Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans.
  • We partner with lenders to create housing opportunities for families across the country.
  • We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk.
  • Before investing in any Fannie Mae issued security, you should read the prospectus and prospectus supplement pursuant to which such security is offered.

Where Housing Affordability Is Declining the Most, According to First American Real House Price Index

Retrieved on: 
Monday, August 24, 2020

Nominal house price appreciation grew fastest in Pittsburgh and house-buying power fell as well, putting Pittsburgh third on the list for greatest annual decrease in affordability.

Key Points: 
  • Nominal house price appreciation grew fastest in Pittsburgh and house-buying power fell as well, putting Pittsburgh third on the list for greatest annual decrease in affordability.
  • From June 2019 until April 2020, affordability was improving for all top markets as house-buying power outpaced house price appreciation, said Fleming.
  • While unadjusted house prices are now 13.5 percent above the housing boom peak in 2006, real, house-buying power-adjusted house prices remain 45 percent below their 2006 housing boom peak.
  • The next release of the First American Real House Price Index will take place the week of September 28, 2020 for July 2020 data.

Consumer Confidence in Housing Dips as Homebuying Sentiment Falls Sharply in July

Retrieved on: 
Friday, August 7, 2020

In the months ahead, we continue to expect consumer sentiment to be closely linked to the country's progress in containing the spread of the virus."

Key Points: 
  • In the months ahead, we continue to expect consumer sentiment to be closely linked to the country's progress in containing the spread of the virus."
  • The Home Purchase Sentiment Index (HPSI) distills information about consumers' home purchase sentiment from Fannie Mae's National Housing Survey (NHS) into a single number.
  • Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans.
  • We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk.

Fannie Mae Prices $1.07 Billion Multifamily DUS REMIC (FNA 2020-M14) Under Its GeMS Program

Retrieved on: 
Thursday, April 9, 2020

Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans.

Key Points: 
  • Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans.
  • We partner with lenders to create housing opportunities for families across the country.
  • We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk.
  • Before investing in any Fannie Mae issued security, you should read the prospectus and prospectus supplement pursuant to which such security is offered.

Consumer Confidence in Housing Remains Near All-Time High Despite Slight Dip

Retrieved on: 
Monday, March 9, 2020

Year over year, the HPSI is up 8.2 points, reflecting in part consumers' more favorable mortgage rate expectations, despite that index component moderating this month.

Key Points: 
  • Year over year, the HPSI is up 8.2 points, reflecting in part consumers' more favorable mortgage rate expectations, despite that index component moderating this month.
  • "In particular, household income sentiment picked back up as more workers saw their wages rise amid tight labor market conditions, helping bolster already strong housing demand.
  • Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans.
  • We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk.

Two Forces Re-shaped Housing Affordability in 2019, According to First American Real House Price Index

Retrieved on: 
Monday, October 28, 2019

While unadjusted house prices are now 8.3 percent above the housing boom peak in 2006, real, house-buying power-adjusted house prices remain 42.0 percent below their 2006 housing boom peak.

Key Points: 
  • While unadjusted house prices are now 8.3 percent above the housing boom peak in 2006, real, house-buying power-adjusted house prices remain 42.0 percent below their 2006 housing boom peak.
  • Our Real House Price Index (RHPI) uses consumer house-buying power to adjust nominal house prices, offering insight into affordability.
  • However, rising nominal house prices reduce affordability, and nominal house price appreciation grew by 8.0 percent compared with one year ago.
  • The next release of the First American Real House Price Index will take place the week of November 25, 2019 for September 2019 data.

Housing Sentiment Inches Higher, Driven by Mortgage Rate Outlook

Retrieved on: 
Monday, September 9, 2019

We do expect housing market activity to remain relatively stable, and the favorable rate environment should continue supporting increased refinance activity."

Key Points: 
  • We do expect housing market activity to remain relatively stable, and the favorable rate environment should continue supporting increased refinance activity."
  • The Home Purchase Sentiment Index (HPSI) distills information about consumers' home purchase sentiment from Fannie Mae's National Housing Survey (NHS) into a single number.
  • Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans.
  • We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk.

Fannie Mae Reports Net Income of $3.4 Billion and Comprehensive Income of $3.4 Billion for Second Quarter 2019

Retrieved on: 
Thursday, August 1, 2019

Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans.

Key Points: 
  • Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans.
  • We partner with lenders to create housing opportunities for families across the country.
  • We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk.
  • To learn more, visit fanniemae.com and follow us on twitter.com/fanniemae.