Fannie Mae

The Enterprise Regulatory Capital Framework is going to dramatically transform Fannie Mae and Freddie Mac pricing in ways the industry hasn't begun to contemplate, writes a former senior policy analyst at the FHFA.

April interest rate drops provided momentum for an upturn, but more consumers also thought the outlook for buying and selling was headed in a favorable direction, according to Fannie Mae.

Fannie Mae researchers found housing costs decelerating for the fourth straight quarter, but limited inventory may be driving hopeful buyers to look for opportunities in the new-construction market.

The share of consumers worried about potential job loss spiked to its highest point in 12 months, leading to a downturn in outlook, according to Fannie Mae.

However, while the "market share" analysis is a useful check on the reasonableness of benchmark levels, it is impacted by any errors in the HMDA data, notes a former principal economist at the Federal Housing Finance Agency,

Despite a likely recession, researchers at the government-sponsored enterprise revised volume forecasts upward for both 2023 and 2024, while originators also entered the year expecting their business to improve.

The government-sponsored enterprise expects a "moderate recession" in the first half of 2023.

Freddie Mac previously announced a similar change set to go into effect for mortgages with settlement dates on or after March 7.

Fannie Mae has selected five organizations to share in a $5 million pilot program aimed at expanding and promoting affordable housing and Black homeownership.

Allowing Fannie Mae and Freddie Mac to buy these loans encourages consumers to purchase more expensive homes, the group said.