MBA: Mortgage rates, inflation will stay elevated through 2026
Briefly

MBA: Mortgage rates, inflation will stay elevated through 2026
"Monthly job growth averaged about 15,000 in 2025 and has risen to roughly 70,000 so far in 2026, although the data remains volatile and subject to revision."
"Rising oil prices linked to global conflict are pushing inflation higher than previously expected, with a figure closer to 4% by the end of 2026."
"Affordability remains strained, with almost 17% of 2024 vintage FHA loans and more than 25% of VA loans now underwater."
"Conventional loan delinquencies are about as low as they've ever been, while FHA delinquencies have climbed to about 11.5%, driven by changes to loss mitigation."
The labor market is stable with job growth averaging 70,000 in 2026, while the unemployment rate is around 4.3%. Inflation is expected to rise to 4% due to global conflicts, particularly the war in Iran. The Federal Reserve is not expected to cut rates this year, maintaining a range of 3.5% to 3.75%. Housing supply is increasing, but affordability remains strained, with a significant percentage of FHA and VA loans underwater. Delinquencies vary, with conventional loans stable and FHA loans experiencing an increase.
Read at www.housingwire.com
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