Pulte revamps Fannie Mae, Freddie Mac's boards

Plus: Builder confidence falls on cost uncertainty

March 19, 2025

☕️ Good morning. It's Wednesday. Today's newsletter is 697 words, a 2.5-minute read.

Disclaimer: Average mortgage rates as of Mar 18, 2025. © MND Daily Rate Index.

1. Builder confidence falls on cost uncertainty

Economic uncertainty, the threat of tariffs and elevated construction costs pushed builder sentiment down in March even as builders express hope that a better regulatory environment will lead to an improving business climate.

Builder confidence in the market for newly built single-family homes was 39 in March, down three points from February and the lowest level in seven months, according to the NAHB/Wells Fargo Housing Market Index.

“Builders continue to face elevated building material costs that are exacerbated by tariff issues, as well as other supply-side challenges that include labor and lot shortages,” said NAHB Chairman Buddy Hughes.

2. Pulte revamps Fannie Mae, Freddie Mac's boards

Moving swiftly after his Senate confirmation last week, Bill Pulte, the new director of the Federal Housing Finance Agency (FHFA), has made substantial changes to the boards of Fannie Mae and Freddie Mac, according to filings with the SEC.

Freddie Mac's board saw the departure of six directors, including chair Lance Drummond. Mr. Pulte assumed the chairmanship, appointing Brandon Hamara, Clinton Jones, and Ralph "Cody" Kittle. At Fannie Mae, eight directors were removed, including former chair Michael Heid, while CEO Priscilla Almodovar and four other directors remain. New appointees include Clinton Jones, Christopher Stanley of SpaceX, and Michael Stucky, with Mr. Pulte also serving as chair.

“Freddie Mac will provide information regarding any related party transactions and the new directors’ committee assignments as they become known,” according to the Freddie Mac filing. Fannie Mae has not yet finalized board assignments for its new members.

A MESSAGE FROM MORTGAGE NUGGETS

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3. More Nuggets

🏡 Trump wants to build homes on federal land. Here’s what that would look like. (WSJ)

💸 HUD choked funding to enforce fair-housing laws. Legal aid groups may not survive. (NPR)

🚫 Berkshire Hathaway HomeServices CEO denies Compass sale talks. (BizJournals)

📈 Why rents are rising too fast. (The Economist)

⚖️ Arizona AG asks DOJ to continue RealPage case. (MultifamilyDive)

🤖 World’s first AI real estate agent has already made $100M in sales. (FoxBusiness)

4. Zillow downgrades its 2025 home price forecast

Zillow economists now project that home prices will rise just +0.8% between February 2025 and February 2026. That’s another downward revision. Last month, their 12-month forecast projected a +1.1% increase, and the month before that, they expected a +2.9% increase.

Among the 300 largest housing markets, Zillow expects the strongest and weakest home price appreciation between February 2025 and February 2026 to occur in these metros.

Strongest

  1. Atlantic City, NJ → +5.1%

  2. Knoxville, TN → +4.7%

  3. Kingston, NY → +4.7%

  4. Torrington, CT → +4.6%

  5. Bangor, ME → +4.6%

  6. Rochester, NY → +4.4%

  7. Vineland, NJ → +4.4%

  8. Concord, NH → +4.2%

  9. Norwich, CT → +4.1%

  10. Fayetteville, AR → +3.9%

Weakest

  1. Houma, LA → -7.3%

  2. Lake Charles, LA → -7.0%

  3. New Orleans, LA → -5.5%

  4. Lafayette, LA → -4.6%

  5. Shreveport, LA → -4.4%

  6. Odessa, TX → -4.1%

  7. Beaumont, TX → -3.7%

  8. Alexandria, LA → -3.3%

  9. Chico, CA → -3.0%

  10. Midland, TX → -3.0%

5. Compass tells MLSs to change CCP or face legal exposure

Compass and its CEO, Robert Reffkin, have intensified their criticism of the National Association of Realtors' (NAR) Clear Cooperation Policy (CCP), according to an email published by analyst Rob Hahn.

The company warned MLSs about potential legal risks associated with CCP, citing attorney Michael Ketchmark, who argued that the policy limits homeowners' ability to manage their property listings independently.

Alternative models adopted by Bright MLS and the San Francisco Association of Realtors, such as "office-exclusive" listings and "Coming Soon" designations, were highlighted as possible solutions. The email advised MLSs to consider these alternatives to minimize legal exposure and maintain homeowner flexibility, particularly in light of recent legal scrutiny.

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

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