Posts from December 2016

Many Entry-Level Buyers Lean on Mom and Dad for Downpayment

December 30, 2016 by Zelman & Associates

Earlier this year, we surveyed a nationally-representative sample of consumers (~3,000) about their demographic, housing and financial circumstances. One area of focus was the perception of mortgage credit availability among renters or those ...

Read More

Filed Under | affordabilityentry-levelmillennialsmortgage

Mortgage Interest Deduction: At Risk or Politically Untouchable?

December 30, 2016 by Zelman & Associates

With the incoming Trump administration and the Republican control of Congress, the country appears to be on the verge of tax reform, both for individuals and corporations. For individuals, tax reform is typically centered on marginal income ...

Read More

Filed Under | homeownershipmacro housing

Don’t Count on Another Double-Digit Growth Year for New Home Sales in 2017

December 30, 2016 by Zelman & Associates

For November, the Census Bureau reported that new home contracts were 592,000 on an annualized basis, trailing only July of this year for the best pace of the recovery thus far. Assuming a seasonally-adjusted pace of at least 585,000 in December ...

Read More

Filed Under | new home sales

GSE Reform Discussion Back on the Table but Many Hurdles Remain

December 16, 2016 by Zelman & Associates

We previously offered our initial perspective on what the Trump Presidency would mean for the housing market, including our view that GSE reform, while more likely under a Republication administration, would ...

Read More

Filed Under | mortgage

Higher Interest Rates a Near-Term Speed Bump for Home Price Appreciation

December 16, 2016 by Zelman & Associates

Given transparency in home prices through multiple listing services and public records, there are an abundance of data providers tracking the market. To simplify the discussion, we rely on our aggregate existing home price index that incorporates ...

Read More

Filed Under | affordabilityhome pricing

Where is the Floor for Mortgage Refinance Demand in 2017?

December 16, 2016 by Zelman & Associates

At this point last year, 30-year fixed mortgage rates were expected to average approximately 4.10% in 2016 and we predicted refinance volumes to decline 30% for the year. Instead, volatile financial markets to begin the year, slowing macroeconomic ...

Read More

Filed Under | mortgagerefinance

Will the Recent Increase in Interest Rates Short Circuit the Housing Recovery?

December 02, 2016 by Zelman & Associates

Of the various interest rate measures cited in the media, the United States 10-year Treasury yield is the most important to monitor for the housing market as it serves as the benchmark for how 30-year fixed rate mortgages are priced. Unfortunately, ...

Read More

Filed Under | macro housingmortgage rates