Author: Anders Klintoe
The report seeks to highlight the major economic mortgage drivers along with CRT Performance and anorigination quality index both derived from Freddie Mac's ACIS® & STACR® Programs.
The latest quarterly economic indicators point to a supportive environment. Gross Domestic Product (GDP) grew by 1.0% for the quarter and 2.0% year over year (see: Gross Domestic Product). The unemployment rate edged up slightly to 4.3% (see: Unemployment Rate).
Personal income per capita rose, reaching a record high of $76.3K per household (+$1.8K) (see: Personal Income per Capita). The labor force participation rate held steady at 62.3%, consistent with levels observed from 2015 to 2018 (see: Labor Force Participation Rate). Treasury yields and mortgage rates declined during the quarter, reflecting a more accommodative policy stance from the Federal Reserve, as evidenced by two 25-basis-point rate cuts. Future rate reductions remain uncertain as the Federal Reserve remains data dependent, and the current government shutdown delays the release of several key indicators. (see: Mortgage Rate Developments).
Quarterly GSE securitization volumes remain near 10-year lows, while Freddie Mac's market share holds steady at over 50%. The estimated CRT-eligible share of new securitizations also stays near the all-time high of approximately 80% (see: Origination Volume).
Home prices rose slightly by 0.3% in the latest quarter and increased 1.6% year over year (see: National House Price Change). On an annual basis, 44 of 51 states (including Washington, D.C.) reported home price appreciation, ranging from -3.0% in Florida to 8.4% in Connecticut. The strongest growth was concentrated in the Northeast and the Midwest (see: Annual State Level House Price Change).
To request a version of the full report, please reach out to a member of the mortgage team.
