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The Federal Reserve on Aug. 1 said that interest rates would remain unchanged due to strong growth — although a September hike is anticipated, Bloomberg reported. The Fed noted that unemployment is low, and household and business spending is on the rise.
Wells Fargo will pay $2 billion to settle U.S. Justice Department allegations that it misrepresented the quality of subprime mortgages backing residential mortgage-backed securities in the run-up to the housing crisis, HousingWire reported Aug. 1. The bank allegedly securitized and sold loans that it knew contained false income information.
The delinquency rate for commercial mortgage-backed securities fell during the second quarter, and continued improvement is expected for the remainder of the year, according to ratings agency Fitch Ratings, MBA NewsLink reported Aug. 1. Several potential risks on the horizon could push up the delinquency rate next year.
Homeowners are expected to spend more on home improvements next year, as a strong job market and rising home values empower them to invest in larger upgrades and replacement projects, according to the Joint Center for Housing Studies of Harvard University, MBA NewsLink reported July 27.
The Appraisal Institute Board of Directors at its Aug. 2-3 meeting in Nashville, Tennessee, voted to direct to 45-Day Notice proposed changes to the dues and fee payments sections of the Bylaws.
President Trump on July 31 signed legislation that extends the National Flood Insurance Program by four months — until Nov. 30, the White House reported. The extension gives lawmakers a small window to craft a longer-term extension for the program, which is underfunded by about $20 billion.
The Federal Housing Finance Agency extended for an additional 60 days the public comment period for its proposed rule on capital requirements for the government-sponsored enterprises, MBA NewsLink reported Aug. 1. The FHFA cited numerous requests for more time from multiple stakeholders as reasons for the extension to Nov. 16.
The U.S. commercial real estate lending market is expected to remain strong the rest of the year, despite financial market volatility and heightened trade tensions, according to real estate services firm CBRE, World Property Journal reported Aug. 2. Banks accounted for almost half the non-agency lending volume during the second quarter.
The office sector slowed during the second quarter as completions outpaced net absorption — the fifth consecutive quarter with that result, according to online real estate firm Ten-X, MBA NewsLink reported Aug. 1. The absorption rate is expected to drop again in 2019 and 2020, with improvement coming in 2021.
Mortgage rates during the past week reached one of their highest levels of the year and are hovering near a seven-year high, Freddie Mac reported Aug. 2 in its Primary Mortgage Market Survey. High mortgage rates, along with a lack of affordable inventory, continue to negatively impact existing home sales.
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