Mortgage Industry Trends

Consumer’s Got a New Attitude on Housing

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mike-vitali-said-what-patti-labelle-housing-marketSeems not everyone is upset by the election of our new President. According to Fannie Mae’s January Home Purchase Sentiment Index, consumers have a more positive outlook for housing. That’s a good thing.

Patti LaBelle sang it like this…

I’m feeling good from my hat to my shoe

Know where I’m going and I know what to do

I’ve tidied up my point of view

I’ve got a new attitude.

Doug Duncan, Chief Economist at Fannie said, “Three months after the presidential election, measures of consumer optimism regarding personal financial prospects and the economy are at or near the highest levels we’ve seen in the nearly seven-year history of the National Housing Survey.”

However, he added that any real acceleration in housing activity will also depend on the consumers’ realization of their expectations for increased income to offset increased affordability.

According the survey results:

  • 55% do not believe that mortgage rates will decline
  • Those who believe now is a good time to buy decreased by 3%, to 29%
  • 42% believe home prices will increase; a rise of 7% from December
  • Consumers report that their household income is significantly higher than last year up 5%, to 15%
  • Those thinking now is a good time to sell rose 2%, to 15%.
  • Respondents who are not concerned about losing their job increased by 1%, to 69%\

 

Some good, some not so good, but overall consumers have a positive attitude on housing. Any rise in the cost of homeownership should be offset by an improving economy, resulting in stronger wage growth and more stability in employment. If so, housing should do just fine. If not, we have bigger fish to fry.

So let’s hope…

We’re in control,

Our worries are few;

Cause we got some lending to do

Ooh oh oh oh oh

We got a new attitude!

 

Editor’s Note: Our apologies, on every level, to Patti LaBelle.

Michael Vitali

About the Author

Michael Vitali

Michael L. Vitali – Independent Consultant to the Mortgage Industry Mike Vitali is an independent consultant to the mortgage industry on matters concerning compliance and mortgage lending. He most recently served as the Senior Vice President and Chief Compliance Officer for LoanLogics, monitoring regulatory developments and their practical implications for the mortgage lending industry. His duties included research, interpretation, and analysis of existing and proposed legislation related to the industry in support of recommendations for policy and/or procedure changes to maintain continued quality and compliance with all applicable laws, rules and regulations, investor requirements, and standard mortgage practices. In his more than 40 years in the mortgage industry, in senior level management, he has gained experience in all areas of mortgage lending, risk management, and compliance. Mike is a past President of the MBA of Greater Philadelphia, is a charter member and was the second Chairman of the MBA of Pennsylvania, and a past board member and Legislative Chair of both associations. He is a recipient of the 1998 Mortgage Banker of the Year Award from the MBA of Greater Philadelphia, and the 2003 Chairman's Award from the MBA of PA, and currently serves on several compliance related task forces for MBA.
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Michael Vitali

About Michael Vitali

Michael L. Vitali – Independent Consultant to the Mortgage Industry Mike Vitali is an independent consultant to the mortgage industry on matters concerning compliance and mortgage lending. He most recently served as the Senior Vice President and Chief Compliance Officer for LoanLogics, monitoring regulatory developments and their practical implications for the mortgage lending industry. His duties included research, interpretation, and analysis of existing and proposed legislation related to the industry in support of recommendations for policy and/or procedure changes to maintain continued quality and compliance with all applicable laws, rules and regulations, investor requirements, and standard mortgage practices. In his more than 40 years in the mortgage industry, in senior level management, he has gained experience in all areas of mortgage lending, risk management, and compliance. Mike is a past President of the MBA of Greater Philadelphia, is a charter member and was the second Chairman of the MBA of Pennsylvania, and a past board member and Legislative Chair of both associations. He is a recipient of the 1998 Mortgage Banker of the Year Award from the MBA of Greater Philadelphia, and the 2003 Chairman's Award from the MBA of PA, and currently serves on several compliance related task forces for MBA.
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