Stop! MBA, NAR and NAHB urge Powell in letter

Good morning. In today’s edition:

• Hispanics poised to be 70% of U.S. homebuying by 2040

• MBA, NAR, and NAHB urge Powell to stop rate hikes

• Mortgage credit availability rises

…and lots more. Have a good day.

1. MBA, NAR, and NAHB urge Powell to stop rate hikes

In a joint effort that underscores the severity of affordability in the U.S. housing market, three major players in the real estate industry—the Mortgage Bankers Association (MBA), National Association of REALTORS® (NAR), and National Association of Home Builders (NAHB)—have penned a letter to Federal Reserve Chairman Jerome Powell.

Their message is clear: the real estate market is in dire need of stability amidst ongoing uncertainty about the Fed’s rate path.

To address these pressing concerns, the MBA, NAR, and NAHB urge the Fed to make two clear statements to the market:

• The Fed does not contemplate further rate hikes

• The Fed will not sell off any of its MBS holdings until and unless the housing finance market has stabilized and mortgage-to-Treasury spreads have normalized

“We urge the Fed to take these simple steps to ensure that this sector does not precipitate the hard landing the Fed has tried so hard to avoid.” the letter read.

Fed Rate-Hike Odds

As of Tuesday afternoon, markets are pricing in just 12% odds of a Fed rate hike on Nov. 1, down from about 27% on Friday.

2. Hispanics poised to be 70% of U.S. homebuying by 2040

The Hispanic community is carving out a substantial niche in the homebuying landscape, with projections from CoreLogic and the Urban Institute showing them making up 70% of new homeowners by 2040.

The journey isn't without hurdles—escalating home prices and interest rates are notable barriers. Yet, the momentum continues with a slight uptick in home loans in majority-Hispanic areas, moving from 6.6% to 6.8% within a year.

The younger age bracket of these homebuyers, although a financial constraint, hints at a long-term market presence. The demographic shift underscores a youthful, emerging market force ready to navigate through the real estate hurdles.

3. Higher rates may be loosening credit conditions, MBA says

Mortgage credit accessibility experienced an uptick in September, according to the Mortgage Credit Availability Index (MCAI) from the MBA.

The MCAI showed a rise of 0.6%, reaching 97.2 in September. A drop in the MCAI indicates tightening lending standards. Conversely, an uptick in the index reflects a relaxation of credit.

“Credit availability increased slightly in September, as lenders increased their loan offerings marginally to meet the changing needs of borrowers who are facing higher mortgage rates,” said Joel Kan, MBA’s deputy chief economist.

4. More nuggets

✍️ Hometown Lenders slashes headcount, transitions to broker model. (NMN)

⚖️ The CFPB is suing Freedom Mortgage, accusing the lender of submitting error-filled mortgage loan data in breach of federal requirements. (NMP)

🧘 Yoga and a mortgage? Guaranteed Rate has a new app for that. (Rate)

🏙️ The 11 major U.S. cities where home prices have risen the most—No. 1 isn’t New York or San Francisco. (CNBC)

5. Anywhere, RE/MAX drop buyer commission and NAR requirements

Last week, Anywhere and RE/MAX revealed the terms of their respective proposed settlements in two of the Sitzer/Burnett and Moehrl cases. Here are some of the key terms of those settlements:

• NAR membership is no longer required

• Agents must clearly disclose that commissions are fully negotiable and not set by law

• No more minimum commission requirements

The National Association of Realtors has vowed not to settle and has said that the proposed settlements do not change how its case will be presented in court.

☀️ See you on Friday!

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