Mortgage lender credit standards eased during the second quarter as purchase volume was lower than expected and competition increased, according to the Fannie Mae Lender Sentiment Survey.
Defaults on first-lien mortgages fell 5 basis points in May from the previous month, dropping to their lowest level in a year, according to the S&P/Experian Consumer Credit Default Index.
Federal Reserve Vice Chairman Stanley Fischer said a long period of low interest rates may have contributed to "high and rising" home prices in several countries, cautioning against forgetting the lessons of the 2007-09 housing crisis.
The young adult homeownership rate should increase by 1.5 percentage points over the next two decades as education attainment among racial and ethnic minorities continues to rise.
With refinancing coming in a little stronger than expected and underwriting loosening, Fannie Mae has slightly increased its forecast for total volume in 2017.
