Housing Market

Housing Market

The GSE Conservatorships Are Not Sustainable Says FHFA Director

“…[I]t is especially irresponsible for the Enterprises not to have such a limited buffer because a loss in any quarter would result in an additional draw of taxpayer support... [T]his could erode investor confidence [,] …stifle liquidity in the [MBS] market and …increase the cost of mortgage credit for borrowers. FHFA has explicit statutory obligations to ensure that each Enterprise …fosters ‘liquid, efficient, competitive, and resilient national housing finance markets.’ To ensure that we meet these obligations, we cannot risk the loss of investor confidence."


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Posted: May 12th, 2017 | Permalink

Homeownership in Crisis

U.S. homeownership rates have fallen to lowest level in more than 50 years.

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Posted: March 28th, 2017 | Permalink

Home Buyer and Seller Generational Trends

“…Buyers 36 years and younger (Millennials/Gen Yers) is the largest share of home buyers at 34 percent,” according to the National Association of Realtors. “46 percent of buyers 36 years and younger that had debt reported having student loan debt with a median loan balance of $25,000. While only 27 percent of buyers 37 to 51 have student loan debt, they have the highest median balance of debt at $30,000.”

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Posted: March 8th, 2017 | Permalink

The Economic Implications of Housing Supply

"Housing supply shapes housing prices and the size of metropolitan areas. When supply is highly regulated, prices are higher and population growth is smaller relative to the level of demand. The regulation of America’s most productive places seems to have led labor to locate in places where wages and prices are lower, reducing America’s overall economic output in the process. The older, richer buyers in America’s most regulated areas have experienced significant increases in housing equity. The rest of America has experienced little growth in housing wealth over the past 30 years."

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Posted: February 24th, 2017 | Permalink

Hiding in Plain Sight

“For some time now the Fed’s balance sheet had basically been hiding in plain sight, no mean feat considering how large that balance sheet is,” wrote Regents’ economists Richard Moody and Greg McAtee. “Recent weeks, ...have seen the Fed’s balance sheet gently pushed out of the shadows, even if it remains some distance from center stage in the FOMC’s policy framework. To be sure, when it comes to monetary policy, the Fed funds rate remains the main focus of the FOMC as well as market participants, but that many FOMC officials are now openly discussing the balance sheet means it’s time for the rest of us to start paying attention.”

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Posted: February 10th, 2017 | Permalink

Private Infrastructure Provision: The Easy, the Hard, the Impossible

Posted: January 30th, 2017 | Permalink