Fed’s Mortgage-Backed Securities Purchases Sought Calm, Accommodation During Pandemic
We explore the Federal Reserve’s purchases of agency MBS—mortgage bonds guaranteed by Ginnie Mae, Fannie Mae and Freddie Mac—and related market dynamics during the pandemic, including why mortgage rates fell to historic lows.
August 26, 2021
Surging House Prices Expected to Propel Rent Increases, Push Up Inflation
The inflation rates of rent and owners’ equivalent rent (OER)—the amount of rent equivalent to the cost of ownership—have declined sharply since the COVID-19 pandemic began in February 2020. However, we expect rent inflation and OER inflation to accelerate in the years to come.
August 24, 2021
Private Subprime Mortgages Challenged FHA During 2000s Housing Boom
Considerable research has been devoted to better understanding the meteoric rise of the PLS subprime mortgage market in the early-to-mid 2000s. But an important aspect has been largely ignored: The simultaneous decline in mortgage originations with Federal Housing Administration (FHA) insurance.
May 11, 2021
COVID-19 Exposes Mortgage Market Vulnerabilities that Led to Volatility, Fed Intervention
The COVID-19-induced financial market shock in March 2020 significantly disrupted the market for agency mortgage-backed securities.
February 02, 2021
Does Homeownership Provide an Escape from High Rent Burdens?
Many first-time homebuyers—often with little savings and vulnerable to economic shocks—obtain their mortgages through the Federal Housing Administration (FHA) loan program. Often, these borrowers are moving from apartments and have presumably weighed the costs of renting versus owning.
January 05, 2021
Southwest Economy, Fourth Quarter 2020
COVID-19 Fuels Sudden, Surging Demand for Suburban Housing
Pandemic-related actions have helped propel a sudden, large shift from renting to homeownership and a concurrent movement to the suburbs and larger homes.
December 21, 2020
Highly Indebted FHA Borrowers at Special Risk as COVID-19 Forbearance Ends
The situation appears most urgent for those borrowers who entered the crisis with a high debt load and little room to financially navigate without forbearance.
September 29, 2020
Ability to Repay a Mortgage: Assessing the Relationship Between Default, Debt-to-Income
The Consumer Financial Protection Bureau has announced that it intends to change the definition of a “qualified mortgage.” Specifically, the CFPB proposes to reconsider the use of a borrower's debt-to-income ratio as a measure of the ability to repay a loan.
March 24, 2020
The Long Road to Housing Finance Reform: 'Are We There Yet?'
Over the past decade, broad-based legislative reforms for housing finance have proven elusive. However, reflecting lessons from the financial crisis, a political consensus has emerged on how Fannie Mae and Freddie Mac should operate.
February 04, 2020
After the Bust, the Long Road to Housing Finance Reform
The Treasury recently released a plan proposing several administrative and legislative changes aimed at returning Fannie Mae and Freddie Mac to the private sector after more than a decade of federal control.
January 14, 2020