Recent inflation trends along with the strong jobs report for January “suggest the lower likelihood of a rate cut” at the next Federal Open Market Committee meeting, according to Joel Kan, a vice president and deputy chief economist at the Mortgage Bankers Association.
The Federal Reserve will soon issue proposals revising capital requirements set under the Basel framework in a way that could increase bank involvement in mortgage originations and servicing.
Fannie projects that the average interest rate on a 30-year fixed-rate mortgage will hold at 6.1% in the second quarter before declining to 6.0% in the third quarter and then remain at that level through the end of 2027.
Delinquencies continue to rise but industry participants stress there’s no cause for concern. They pointed to a change in FHA loss-mitigation policies during the fourth quarter and “market recalibration.” (Includes two data tables.)
“Builders reduced their expectations for future sales as buyers report affordability challenges, which is contributing to declining consumer confidence for the overall economy,” said Buddy Hughes, chair of the National Association of Home Builders.