Zelman Insights

Ends of Income Spectrum Shaping Current Story of Existing Home Sales

September 23, 2016 by Zelman & Associates

Each month as part of our private homebuilder survey, we ask our contacts to rate new home demand by price point on a 0-100 scale. In August, the entry-level segment was rated at 67.3, representing the strongest of the five price points for ...

Filed Under
existing home sales survey

After Strong Home Price Increases This Cycle, Affordability Still Screens Favorably

September 09, 2016 by Zelman & Associates

There are numerous home price measures that are provided by the government and private entities, both for free and a charge, that offer market participants a general understanding of national pricing. Given that all of the datasets have their ...

Filed Under
affordability home pricing

Facts Behind “Millennials” and Home Purchases

September 09, 2016 by Zelman & Associates

It seems that not a day goes by that a major news outlet does not mention the term “Millennial,” typically with a focus on how this generation is likely to impact the economy as it ages. The term Millennial was initially used to describe young ...

Filed Under
demographics entry-level millennials

The Fed Watch: What Does Next Raise Mean for Mortgage Rates?

September 09, 2016 by Zelman & Associates

The Federal Open Market Committee (FOMC) is scheduled to announce its next policy rate decision on September 21st, putting the trajectory of interest rates back into the media headlines. Last December, the FOMC raised the target for the federal ...

Filed Under
mortgage rates

Analyzing Impact of Student Debt on Homeownership and Single-Family Living

August 26, 2016 by Zelman & Associates

Earlier this month, Fannie Mae posted an article titled “Student Debt Isn’t the Roadblock to Homeownership Many Believe”, emphasizing that student debt is not the deciding factor behind whether young adults own their home or not, because it ...

Filed Under
demographics student debt

What to Make of Strong New Home Sales and Weak Existing Home Sales?

August 26, 2016 by Zelman & Associates

For many looking from afar, the release of new and existing home sales in July was likely a bit puzzling. Seasonally-adjusted new home sales, according to the Census Bureau, posted a recovery high and were up 31% year over year. Meanwhile, ...

Filed Under
existing home sales new home sales survey

Based on Credit Scores, How Tight Is Mortgage Underwriting Versus History?

August 12, 2016 by Zelman & Associates

In the mainstream media, it is common to find opinions that mortgage credit availability is “too tight” or “a headwind for first-time homebuyers” or “only available to pristine borrowers.” While we do not believe that to be true as terms on ...

Filed Under
entry-level mortgage

Older High Schoolers a Secular Factor in Young Adults Living at Home

August 12, 2016 by Zelman & Associates

As of the 2010 Decennial Census, 77.6% of 18-19 year olds lived at home with their parents or grandparents, 240 basis points higher than in 2000, which is at least partly related to a less favorable employment backdrop in 2010 when the national ...

Filed Under
demographics

How Do We Reconcile Good Single-Family Housing With Bad Homeownership?

July 29, 2016 by Zelman & Associates

For 2Q16, the Census Bureau announced that the national homeownership rate registered 62.9%, down 50 basis points from 2Q15. The headline was particularly eye-catching given that it tied 2Q65 for the lowest second quarter level of the last ...

Filed Under
homeownership

Non-Bank Mortgage Originators Most Accommodating to FHA Borrowers

July 29, 2016 by Zelman & Associates

In recent years, national banks have faced numerous legal headwinds related to legacy mortgage exposure, incurring billions of dollars of fines in aggregate, which has led many to de-risk their origination business. This has been particularly ...

Filed Under
entry-level mortgage