Home purchase sentiment picks up

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1. Home purchase sentiment improves slightly

Housing sentiment ticked up 0.3 points to 73.4 in January, Fannie Mae reported, marking a reversal from December's decline.

The data showed consumers are growing more optimistic about buying and selling conditions, with more expecting home values to rise. The gauge is up 2.7 points from a year ago.

Rate expectations soured, with 13% fewer respondents predicting lower mortgage costs ahead, following last year's wave of optimism. In addition, the share of consumers who expect rental prices will go up increased by 8% from last month.

2. MBA pushes for lower FHA insurance premiums

Amid Trump administration efforts to deliver emergency housing price relief, the MBA is calling for a "reasonable reduction" in FHA mortgage insurance premiums. The group argues that lowering these premiums could immediately ease monthly payments for borrowers.

MBA President Bob Broeksmit told the HousingWire Daily podcast, “We believe the administration could very quickly make good on this pledge by taking a very serious look at the mortgage insurance premium for FHA loans.”

Although critics contend that the impact would be modest compared to high home prices and rising mortgage rates, industry figures stress that for payment-sensitive buyers, even a small reduction matters.

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3. More Nuggets

🚨 CFPB’s future hangs in the balance after a wild weekend, details. (BankingDive)

🆕 Realtor’com leaves California to set up headquarters in Texas. (FinancialTimes)

🏈 Rocket makes a Super Bowl commercial comeback. (AdWeek)

📰 Black Mortgage Professional Alliance to host its first conference. (BMPA)

4. January jobs report steady amid uncertainty

The economy kicked off 2025 by adding 143,000 jobs in January, fewer than expected; but the unemployment rate dipped to 4%, according to data released Friday by the Bureau of Labor Statistics.

Economists were projecting the unemployment rate would stay at 4.1% and 170,000 jobs would be added, according to FactSet estimates.

5. Home prices rise in nearly 90% of metros

In Q4 2024, nearly 90% of U.S. metro areas recorded annualized home-price gains, led by Jackson, Mississippi, which surged 28.7%, according to the NAR.

The national median price for single-family homes rose 4.8% year-over-year to $410,000—a 49.9% increase over five years. Despite rising prices, mortgage payments dipped slightly, easing affordability for first-time buyers.

However, in 43.8% of markets, families needed a qualifying income of at least $100,000 to secure a mortgage with a 10% down payment. NAR noted that while homeowners benefited from wealth gains, renters continued to face significant hurdles in entering the market.

☀️ You’re all caught up. See you on Wednesday!

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