A lot of folks are concerned about a housing market crash. They may be wishing for it, or they may be fearing that it will happen — but they are thinking about it.
Last week CNBC published a story that sought to answer why searches for "housing crash" had gone up 2,450% in the past month. This search term is something that has brought readers to HousingWire for years, and it's always surprising, but maybe it shouldn't be. After all, housing demand is very high and inventory is really low, so we're seeing bidding wars, appraisal gaps and really steep home prices all over the country.
If you aren't in the business day to day, all those factors could seem scary. Heck, even if you are in the business you could wonder what it all means.
But Lead Analyst Logan Mohtashami says not to worry, the housing market is not going to crash. And — as usual — he has loads of charts and data to back up his opinion.
"This story is more about low inventory than speculative demand," Mohtashami writes. "Inventory is abnormally low when housing demographics are solid; we have low mortgage rates and some make-up demand for opportunities lost in 2020 during the COVID-19 shutdowns. However, we don't have anything that looks like the speculative credit bubble we saw from the years 2002-2005."
Read Mohtashami's article here and share with clients, friends and family so they can stop losing sleep googling housing crash and go back to scrolling baby goats and this beaver who is being rehabbed in a person's house.
In today's HousingWire Daily episode, HousingWire Digital Media Manager Alcynna Lloyd joins HousingWire Editor in Chief Sarah Wheeler to discuss the biggest topics coming across HousingWire's news desk.
Internet searches for the term "housing crash" went up 2,450% in the past month. Folks concerned about a housing market crash shouldn't be. HW+ Premium Content.
Servicers can make a difference to homeowners impacted by COVID-19. Fannie Mae's one-stop toolkit has all the information you need to answer homeowners' questions about forbearance and post-forbearance options. Visit the Toolkit.
Servicers' total number of loans in forbearance dropped for the seventh week in a row, down another 16 basis points last week to 4.5% of portfolio volume, according to the Mortgage Bankers Association.
HousingWire recently sat down with Tom Hutchens, Angel Oak EVP of production, who shared how non-QM lending could be an effective way for lenders to replace lost business in the event of a refi boom slowdown. Presented by Truework
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