Freddie Mac Derides Pessimistic Housing Forecasts – NMP Skip to main content

Freddie Mac Derides Pessimistic Housing Forecasts

Phil Hall
Oct 13, 2016

Freddie Mac has acknowledged what it has defined as “the pessimistic tone of the projections of leading experts of future homeownership rates” and has responded with a thumbs-down.

In the October edition of its monthly Insight report, Freddie Mac noted that both Harvard University’s Joint Center on Housing Studies and the Urban Institute are forecasting the possibility of homeownership rates below 60 percent. But Freddie Mac’s expert point out that these forecasts overlook three key considerations: the still-undetermined future of federal housing finance policy (especially in regard to the fate of the government-sponsored enterprises), the long-overdue wide push of Millennials into the homeownership world, and—in what is viewed by Freddie Mac as the ultimate wild card—the potential for increased homeownership rates among nonwhites.

“We believe their projections may be overly pessimistic,” said Freddie Mac Chief Economist Sean Becketti about the Joint Center on Housing Studies and the Urban Institute’s respective forecasts. “The income and education gaps that are responsible for some of the differences may be narrowed or eliminated as the U.S. becomes a 'majority minority' country. And as these types of potential home buyers comprise a larger and larger share of the population, it will become increasingly expensive to overlook them. Profit-oriented financial institutions will be motivated to find better ways to serve them.”

Published
Oct 13, 2016
loanDepot And mellohome's 'Grand Slam' Experience Builds Momentum

After recently launching Grand Slam, a new buying experience, loadDepot and its sister company, mellohome, has seen more than 1,400 accepted customer offers.

Industry News
Dec 08, 2021
SoCal VA Homes Stresses Importance Of New VA Loan Limits

SoCal VA Homes, a company that works exclusively with active military and Veteran homebuyers, expressed how important the Federal Housing Finance Agency's new conforming loan limit is to the demographic.

Military Lending
Dec 08, 2021
OpenClose Launches Mobile Assist

OpenClose, a fintech provider of mortgage software solutions for banks, credit unions, and mortgage lenders launched its native mobile app platform, Mobile Assist.

Tech
Dec 07, 2021
Deephaven Heightens Foreign National DSCR Program

Deephaven is amping up its Foreign National DSCR Program as a response to the increase in the real estate investment market.

Non-QM
Dec 07, 2021
Revolution Mortgage Opens Second Mortgage Branch In Cincinnati

Columbus, OH-based Revolution Mortgage announced the opening of its second branch in Cincinnati and 14th branch in Ohio.

Industry News
Dec 06, 2021
Nations Lending Teams Up With NBA Legend Dennis Rodman On Integrated Brand Campaign

Nations Lending, a full-service national mortgage lender, announced the launch of its first integrated brand campaign starring NBA Champion and All-Star Dennis Rodman.

Sales and Marketing
Dec 06, 2021