The housing market is about to spontaneously combust

It is clearly difficult to buy in the current market, and members of Congress from both sides of the aisle are trying to make it easier.

Was this newsletter forwarded to you? Sign up here. Good afternoon —   It is clearly very difficult to buy in the current housing market, and members of Congress from both sides of the aisle are trying to make it easier. We have bills for first-time homebuyers and first-generation homebuyers, and now we have a bipartisan bill that would benefit teachers and first responders, essential workers who often get priced out of homebuying.   The new bill would benefit police officers, prison guards, firefighters, paramedics, emergency medical technicians and public or private school teachers who have worked in those professions for at least four years.   Like the benefit given to veterans through a VA loan, this bill would allow borrowers to finance up to 100% of the acquisition price. They would pay an up-front mortgage insurance premium of 3.6% of the principal, which could be financed, and would not pay a monthly insurance premium.   The bill, like others before it, seems like a great idea, BUT— and it's a huge one — where are they going to find any inventory? The housing market is already so hot it's about to spontaneously combust and adding more buyers to the mix is like eating a Carolina reaper in Death Valley if it was located on Eta Carinae. Seems like overkill.   But, long term, once rates rise and cool off demand, these bills will provide a much-needed shot in the arm to many who have been shut out of homeownership for decades or generations. The desire to help underserved populations achieve homeownership is strong right now and it makes sense to strike while that iron is hot.   Until tomorrow —   Sarah Wheeler HousingWire Editor in Chief   P.S. Check out this Twitter thread from Redfin CEO Glenn Kelman for specifics on how bizarre the current housing market is. Pure gold. First American's Odeta Kushi talks April housing starts    In this episode, First American Deputy Chief Economist Odeta Kushi discusses the latest housing starts report from the U.S Census Bureau. Kushi also examines rising lumber costs, climbing mortgage rates and increasing inventory to meet homebuyer demand. Listen now Building material prices take their toll on new home sales    While new home sales grapple with supply constraints, demand has yet to be tamed as April's new home sales are nearly double (48.3%) that of April 2020's. Consumer Research: The Mortgage Experience Borrowers Expect Two white papers explore how lenders can modernize appraisal and closing for a better borrower experience. Using survey data from 1,500 consumers who recently interacted with the mortgage process, they provide actionable recommendations for today's lenders. Download the white papers. Sponsored by ServiceLink Home prices haven't risen this fast since 2005    Home prices in March were 13.2% higher year over year, per the most recent S&P Case-Shiller Home Price Index report — the highest gain since December 2005. How hybrid title and valuations help increase lending efficiency   Streamline by combining services. Why use several vendors for title searches, appraisals and underwriting when you can use one? Presented by Altisource HousingWire, 433 East Las Colinas Blvd., Suite 830, Irving, TX 75039, (469) 893-1480 Unsubscribe Manage preferences

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