Issue link: http://dsnews.uberflip.com/i/1513140
MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 70 December 2023 J O U R N A L consumers are fed up with the high pric- es of many goods and services. Although the labor market is strong and wages have risen in the past year, consumers may believe that their purchasing power has not kept up with prices, as 69% of consumers say their incomes are 'about the same' compared to the previous year. We expect this tightness in household finances, along with high home prices and elevated mortgage rates, to prolong the affordability challenges facing many would-be homebuyers." Home Purchase Sentiment Index: Component Highlights for October » Good/Bad Time to Buy: The percent- age of respondents who say it is a good time to buy a home decreased from 16% to 15%, while the percentage who say it is a bad time to buy increased from 84% to 85%. As a result, the net share of those who say it is a good time to buy decreased by 2 percentage points month over month. » Good/Bad Time to Sell: The percent- age of respondents who say it is a good time to sell a home remained un- changed at 63%, while the percentage who say it's a bad time to sell remained unchanged at 37%. As a result, the net share of those who say it is a good time to sell remained unchanged month over month. » Home Price Expectations: The percentage of respondents who said home prices would go up in the next 12 months decreased from 42% to 40%, while the percentage who said home prices would go down remained un- changed at 23%. The share of people whose home prices will stay the same increased from 35% to 36%. As a result, the net share of those who say home prices will go up in the next 12 months decreased by 2 percentage points month over month. » Mortgage Rate Expectations: The percentage of respondents who say mortgage rates will go down in the next 12 months decreased from 17% to 16%, while the percentage who expect mortgage rates to go up increased from 46% to 47%. The share of people who think mortgage rates will stay the same decreased from 37% to 36%. As a result, the net share of those who say mort- gage rates will go down over the next 12 months decreased by 1 percentage point month over month. » Job Loss Concern: The percentage of respondents who say they are not concerned about losing their job in the next 12 months increased from 75% to 78%, while the percentage who say they are concerned decreased from 23% to 21%. As a result, the net share of those who say they are not concerned about losing their job increased by 5 percentage points month over month. » Household Income: The percentage of respondents who say their household income is significantly higher than it was 12 months ago increased from 18% to 20%, while the percentage of re- spondents who say their household in- come is significantly lower decreased from 13% to 10%. The percentage of people who say their household in- come is about the same increased from 68% to 69%. As a result, the net share of those who say their household in- come is significantly higher than it was 12 months ago increased by 5 percent- age points month over month. Fannie Mae's Home Purchase Senti- ment Index (HPSI) increased in October by 0.4 points to 64.9. The HPSI is up 8.2 points compared to the same time last year. FHA REVISES APPRAISAL REQUIREMENTS FOR MANUFACTURED HOMES T he Federal Housing Adminis- tration (FHA) has published updated appraisal requirements for the valuation of manufactured homes certified under Fannie Mae's MH Advan- tage and Freddie Mac's CHOICEHome programs. Federal Housing Commissioner Julia Gordon announced the news at the Manufactured Housing Institute's National Communities Conference Fall Leadership Forum in Chicago. The updates in Mortgagee Letter 2023-18 align FHA appraisal require- ments with those of other industry par- ticipants and will improve the valuation of these homes for borrowers seeking FHA-insured mortgages. These chang- es also contribute to FHA's efforts to increase the availability and affordability of manufactured housing as part of the Biden administration's Housing Supply Action Plan. "Increasing the supply of afford- able homes in this country will require us to use every tool available to us. That includes innovative solutions like manufactured housing," HUD Secretary Marcia L. Fudge said. "The critical step we're taking today ensures HUD is in alignment with our industry partners, and it will make more quality affordable housing available to people across the country." Effective immediately, FHA's updated policy for the valuation of manufactured homes certified under the Fannie Mae and Freddie Mac programs requires appraisers to use the most appropriate site-built-home comparable sales when there are less than two comparable sales of these certified manufactured homes available. Manufactured homes certified under the government-sponsored enterprise (GSE) programs, also known as Cross- Mods, include design features that make them nearly indistinguishable from many site-built homes and address regu- latory barriers in effect in some jurisdic- tions that have historically restricted the placement of manufactured homes. "Updating FHA appraisal require- ments to align with the Fannie Mae and Freddie Mac certification programs supports our comprehensive efforts to in- crease both the supply and affordability of manufactured homes," Federal Hous- ing Commissioner Gordon said. "Today, we've removed another roadblock lim- iting the effectiveness of FHA programs in serving buyers of these manufactured homes. We hope it will facilitate the continued growth and adoption of this important source of affordable and ener- gy-efficient housing."