"The two government sponsored enterprises buy loans from mortgage lenders to ensure liquidity in the market and repackage those into investment products. They also set the standards for creditworthiness and ability to repay for mortgage loans. While they offer several construction products, those support lenders and homebuyers, not builders. HousingWire Lead Analyst Logan Mohtashami has written extensively on what could trigger more homebuilding and weighed in on Trump's statement."
"The builders have seen a significant drop in the monthly supply from recent highs this year, which some would say is beneficial, as it now allows them to build more homes. However, the builders still have a substantial number of completed units for sale and homes that they haven't started construction on yet, so I wouldn't be cheering the monthly supply drop story yet."
Fannie Mae and Freddie Mac buy loans from mortgage lenders to ensure market liquidity and repackage those loans into investment products. They set standards for creditworthiness and ability to repay for mortgage loans and offer construction products that support lenders and homebuyers rather than builders. Builders currently hold a large pipeline of completed but unsold units—over 120,000—which typically signals declining permits and restrains new construction. National existing-home inventory rose to 863,972 homes. New-home inventory was 490,000 at the end of August, 1.4% below July and 4% above August 2024. Lower mortgage rates would encourage builders to issue new permits.
Read at www.housingwire.com
Unable to calculate read time
Collection
[
|
...
]