The Zelman Buzz

Exclusive insights and analyses from our industry-leading research team

The Fed Watch: What Does Next Raise Mean for Mortgage Rates?

September 09, 2016 by Zelman & Associates

The Federal Open Market Committee (FOMC) is scheduled to announce its next policy rate decision on September 21st, putting the trajectory of interest rates back into the media headlines. Last December, the FOMC raised the target for the federal ...

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Filed Under | mortgage rates

Analyzing Impact of Student Debt on Homeownership and Single-Family Living

August 26, 2016 by Zelman & Associates

Earlier this month, Fannie Mae posted an article titled “Student Debt Isn’t the Roadblock to Homeownership Many Believe”, emphasizing that student debt is not the deciding factor behind whether young adults own their home or not, because it ...

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Filed Under | demographicsstudent debt

What to Make of Strong New Home Sales and Weak Existing Home Sales?

August 26, 2016 by Zelman & Associates

For many looking from afar, the release of new and existing home sales in July was likely a bit puzzling. Seasonally-adjusted new home sales, according to the Census Bureau, posted a recovery high and were up 31% year over year. Meanwhile, ...

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Filed Under | existing home salesnew home salessurvey

Older High Schoolers a Secular Factor in Young Adults Living at Home

August 12, 2016 by Zelman & Associates

As of the 2010 Decennial Census, 77.6% of 18-19 year olds lived at home with their parents or grandparents, 240 basis points higher than in 2000, which is at least partly related to a less favorable employment backdrop in 2010 when the national ...

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Filed Under | demographics

Based on Credit Scores, How Tight Is Mortgage Underwriting Versus History?

August 12, 2016 by Zelman & Associates

In the mainstream media, it is common to find opinions that mortgage credit availability is “too tight” or “a headwind for first-time homebuyers” or “only available to pristine borrowers.” While we do not believe that to be true as terms on ...

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Filed Under | entry-levelmortgage

How Do We Reconcile Good Single-Family Housing With Bad Homeownership?

July 29, 2016 by Zelman & Associates

For 2Q16, the Census Bureau announced that the national homeownership rate registered 62.9%, down 50 basis points from 2Q15. The headline was particularly eye-catching given that it tied 2Q65 for the lowest second quarter level of the last ...

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Filed Under | homeownership

Non-Bank Mortgage Originators Most Accommodating to FHA Borrowers

July 29, 2016 by Zelman & Associates

In recent years, national banks have faced numerous legal headwinds related to legacy mortgage exposure, incurring billions of dollars of fines in aggregate, which has led many to de-risk their origination business. This has been particularly ...

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Filed Under | entry-levelmortgage

A Demographic Peak at Those Living Alone

July 29, 2016 by Zelman & Associates

In 2014, approximately 28% of households consisted of one person living alone, up from 26% in 2000, 25% in 1990 and 23% in 1980. The gradual increase has implications for housing demand given that individuals traditionally require less space ...

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Filed Under | demographics

First Single-Family REIT Refinance Highlights Asset Appreciation

July 15, 2016 by Zelman & Associates

Progress Residential is a single-family REIT that owned approximately 17,000 homes as of 1Q16, making it the fourth largest in the country behind Invitation Homes (~48,000), American Homes 4 Rent (~48,000) and Colony Starwood Homes (~32,000) ...

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Filed Under | institutional investorssingle-family rental

Why Don’t More Consumers With Elevated Rates Refinance?

July 15, 2016 by Zelman & Associates

In its most recent weekly survey of mortgage rates, Freddie Mac reported that the national average for a 30-year fixed-rate product was approximately 3.40%, only 10 basis points higher than the historical low posted in late 2012 dating back ...

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Filed Under | mortgagerefinancesurvey