Forbearances fall below 4%, Fannie and Freddie failed at the high court, new single-family house sales slow down, CDC may extend eviction ban, Blackstone bets billions on SFR buy and rent.
In Today’s News
For the First Time in a Year, Forbearances Dip Below 4%
The forbearance rate is officially below 4% for the first time in a year. Servicers’ forbearance portfolio volume fell 11 basis points last week to 3.93%, according to a survey from the Mortgage Bankers Association. The MBA now estimates 2 million homeowners are still in some form of a forbearance plan, Housing Wire reports.
The Millionacres takeaway: Well, if you’re holding your breath for a flood of foreclosures to hit the market as a result of all that pandemic relief, you might go ahead and exhale.
Fannie, Freddie Plunge as High Court Deals Blow to Investors
The U.S. Supreme Court dealt a punishing blow to Fannie Mae and Freddie Mac investors in their challenge to the government’s collection of more than $100 billion in profits from the government-sponsored enterprises, Bloomberg reports today [subscription required].
The Millionacres takeaway: The decision, along with causing investors to flee from the GSEs’ stock, throws out a core part of a multibillion-dollar lawsuit while also giving President Joe Biden the power to fire the director of their parent agency, the Federal Housing Finance Agency. At least they can still buy, sell, and back mortgages, their core mission.
Today on Millionacres
New Single-Family House Sales Dip. Here’s Why Not to Worry
Sales of new single-family houses declined month over month in May, following a trend also showing in the sales of housing of all types.
The Millionacres takeaway: It can be tempting to see continuing declines in month-over-month price gains and construction metrics as signs of a softening residential real estate market, but it also just seems like it’s time for the heat in the housing market to turn from a boil to a simmer. That might well be more sustainable.
The CDC Looks Poised to Extend its Eviction Ban Once Again
Sources told Reuters today that the Centers for Disease Control is considering a one-month extension to its hotly debated eviction ban. This would mark the third extension of the ban since its implementation in September. It's currently set to expire on June 30.
The Millionacres takeaway: Our Aly Yale points out that as with many things during this pandemic, the eviction ban -- not to mention its end date -- is very tenuous, especially with all the litigation it’s sparked.
Blackstone Is Making a $6 Billion Bet on the Housing Market
Blackstone Group (NYSE: BX) is making a big splash in the single-family rental (SFR) market. Through its public, non-traded REIT (real estate investment trust), Blackstone Real Estate Income Trust, or BREIT, the company has agreed to acquire Home Partners of America (HPA) for $6 billion.
The Millionacres takeaway: Our Matthew DiLallo notes that the deal will give Blackstone control of more than 17,000 single-family homes across the country and puts it in perspective as part of a huge investment in this segment by institutional money.