Economy

Gross domestic product is now forecast to only contract in the final three months of the year, and it's projected to merely stagnate in the third quarter instead of shrink, a June survey showed. 

The markets had a muted reaction to the Federal Open Market Committee pause on raising short-term rates a week ago, Freddie Mac found.

But the Mortgage Bankers Association also raised the dollar volume that it predicts the purchase market will originate this year.

Fee hikes at the government-sponsored enterprises are one remedy, the government-sponsored enterprise's regulator noted in its annual report to Congress.

Alimited supply of existing homes continued to spark interest in new construction, the National Association of Home Builders found.

The government-sponsored enterprise's chief executive managing the issue is looking at how things like roof pitch can mitigate the impact of natural disasters on homes.

While home sales should remain constrained this year because of higher rates, growth in the entry-level market has far outpaced that for above-median income families.

The average for the 30-year fixed slipped 2 basis points in anticipation of the Federal Open Market Committee pausing short-term rate hikes, said Sam Khater, chief economist.

Economic analysis from the real estate advisory CBRE finds that community banks are particularly imperiled by their exposure to commercial real estate loans. Others see looming risks in indirect lending.

But Zillow's rate tracker came in flat, while Optimal Blue's rose 10 basis points from its low last Thursday.

Approximately 320,000 properties valued up to $256,000 are missing from the market, a report from the National Association of Realtors and Realtor.com found.

But on a cumulative basis since 2013, the unpaid principal balance of reference pools is higher at Freddie Mac, according to the Federal Housing Finance Agency.

But scarce housing inventory has helped to bring home equity values back upward, offsetting some of the losses of late 2022.

Staff retained or added for the spring homebuying season has stemmed the tide of layoffs for now, according to the Bureau of Labor Statistics' latest figures.

A change in investor sentiment toward an expected pause by the Fed in short-term rate hikes was the driving force behind the current surge, Freddie Mac said.

But when compared past periods of upheaval, those rates remain relatively low, the Mortgage Bankers Association report showed.

The Federal Deposit Insurance Corp. said in its quarterly banking profile that the banking industry remains resilient despite a challenging economic backdrop, but exposure to commercial real estate losses and interest rate risks could make continued stability difficult.

The enterprises should offer an indemnification in lieu of the practice of a repurchase demand for all performing loans, writes the Executive Director of Community Home Lenders of America.

However, much of the damage could already be priced into the stocks after this latest selloff, analysts said.

Investors are concerned that a deal will not be reached in Washington and a default will take place, driving up the benchmark 10-year Treasury yield.