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Top News In Depot Wholesale Today - Breaking & Trending Today

Home Affordability, Vendor Services; Capital Markets; Latest CPI

With the Fed set to end its MBS purchases tomorrow, removing free money from the MBS market, where do you think home affordability will go from here? Mortgage rates are already at their highest levels since 2008 and in theory, a large buyer exiting the space should push MBS prices down and thus mortgage rates up. As one California mortgage executive wrote to me, “Home prices ran up 20 to 30 percent for two years, as Fed Chair Powell could not figure how to get his foot off the accelerator. There are good borrowers and good LTVs out there, but most have been priced out of the market with home values rising 20 percent per year. Take the free money away, and none of this is sustainable.” There is debate about if the Fed’s actions have created some sort of housing bubble. It remains to be seen whether home prices work their way lower, we see no price increases for a couple of years, or the pace of appreciation merely moderates. Helping affordability, more lenders are r ....

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DSCR, Marketing, Compliance, Asset Mgt. Tools; Non-Agency News; STRATMOR on Lenders Staying vs Exiting

Nothing is simple or easy in this world. Take pine nuts. Simple, easy, right? Nope. A staple of pesto, and some salads and desserts, those in the United States don’t come from the United States. They come from China, Russia, and Afghanistan! Our allies? Lenders handling volumes expected to drop more than 40 percent in 2022 isn’t easy. Our housing market isn’t simple. Plenty of attention-grabbing headlines have appeared, saying the U.S. housing market is in bad shape, even plummeting. Like this “U.S. Housing in Much Worse Shape Than Fed Admits.” Remember that millions of households have solid balance sheets, lots of equity, decent credit, and jobs, and there are plenty of millennials that want to own their own place. But the current housing market prompted one West Coast broker to write saying, “Nothing is easy anymore. The Federal Reserve will destroy housing. For some reason, the FOMC will not change the ancient method of containing inflation, ....

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Fraud, Home Equity, Non-QM, Reno Products; Wholesale Updates

Everyone is watching the value of their 401(k) plan go down. You should be watching it go down from “across the pond,” sitting at a sidewalk café in Paris. Anyone traveling in Europe is rejoicing at the exchange rate: Things are more affordable for American tourists this summer, with the exchange rate between the euro and the dollar now about equal. It's the first time since 2002 (in the early years of the euro's existence) that the ratio came close to 1:1, but could come at a cost of global economic stability. The Fed is on track to continue hiking interest rates by 75 bps per meeting to conquer inflation, in comparison to the European Central Bank, which is still hesitant to get too aggressive. EU recession fears are more pronounced than they are in the U.S., especially given the grim energy outlook and the shutting of the Nord Stream 1 pipeline for annual maintenance. (We all have a chance at listening to the MBA’s Dr. Mike Fratantoni di ....

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