Appraisal Institute News

Apr 12, 2023 08:30 AM

Baby Boomers Now Largest Generation of Homebuyers: NAR

Baby boomers make up 39% of homebuyers — up from 29% last year — and now account for the largest generation of buyers, the National Association of Realtors reported March 28. Millennials had been the largest group of homebuyers since 2014, but their percentage dropped from 43% to 28% last year. Gen Z accounts for 4% of buyers.

Mar 29, 2023 08:30 AM

GSE: Climate Risk Should Factor into Mortgage Underwriting

Fannie Mae has hired climate risk modeling firms to assess risk to its balance sheet since it backs more than 40% of all residential mortgages, according to Tim Judge, Fannie Mae’s chief climate officer, CNBC reported March 20. Judge said climate risk should be incorporated into mortgage underwriting, but only after understanding potential property damage and how it could affect property values.

Mar 29, 2023 08:30 AM

Existing-home Sales Jump 14.5% in February: NAR

Sales of existing homes spiked 14.5% in February following 12 consecutive months of declines, the National Association of Realtors reported March 21. Home prices fell slightly, with the median price dropping 0.2% from the previous year to $363,000.

Mar 29, 2023 08:30 AM

Fannie Revises Policy for Appraising Some Manufactured Homes

Appraisers generating an opinion of value for MH Advantage manufactured homes must use other MH Advantage properties as comparables in their report rather than other manufactured homes, and if no such comparables are available, they should instead include two site-built comparables, according to revised policy included in Fannie Mae’s March Appraiser Update.

Mar 22, 2023 08:30 AM

Opportunity to Purchase Assets at Reduced Cost Could be Fleeting: CBRE Survey

With cap rates and interest rates expected to peak later this year, the opportunity to buy real estate assets at lower prices likely won’t last long, according to CBRE’s H2 2022 Cap Rate survey, GlobeSt.com reported March 14. CBRE expects federal fund rates to surpass 5% this year and drop to about 2% by 2025.

Mar 22, 2023 08:00 AM

FHFA Delays Fee for Buyers with Higher Debt-to-income Ratios

The Federal Housing Finance Agency on March 15 announced that it will delay by three months the implementation of the DTI ratio-based fee, which is a new upfront fee for Fannie Mae and Freddie Mac borrowers with higher debt-to-income ratios. The fee has been controversial amongst some industry groups that say it could hurt middleclass buyers and increase overall costs.

Mar 22, 2023 08:00 AM

Industrial Sector Shows Signs of Softening, Stabilizing, According to Moody’s

The industrial sector is starting to show signs of softening, despite elevated manufacturing and consumer goods production, according to a report from Moody’s Analytics, GlobeSt.com reported March 13. The report does not signal a sense of urgency, but notes that the sector is moving away from a period of significant growth and toward stabilization.

Mar 15, 2023 08:30 AM

Hotels Located in Business Districts See Values Drop, Struggle to Refinance: Data

Central business district hotels that cater to business travelers and conference attendees are struggling to refinance loans because their property values have plunged due to the pandemic, GlobeSt.com reported March 9. Approximately $31 billion of CMBS loans backed by hotels are set to mature by 2024, and properties can’t refinance because lenders are demanding more capital.  

Mar 15, 2023 08:30 AM

Pace of Interest Rate Hikes May Increase: Fed

Federal Reserve Chair Jerome Powell told the Senate Banking Committee March 7 that policymakers may have to accelerate the pace of interest rate increases to help keep inflation in check, CNBC reported. Powell noted that getting inflation down to 2% is going to take time and likely will be challenging.

Mar 15, 2023 08:30 AM

Washington State Seeks to Drop Single-family Zoning

The Washington state House of Representatives passed a bill March 6 that would legalize duplexes and fourplexes in virtually every city in Washington, the Seattle Times reported. If enacted, the legislation, which aims to alleviate housing supply issues, likely would end local zoning rules that only allow single-family properties.

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AI News

Baby Boomers Now Largest Generation of Homebuyers: NAR

GSE: Climate Risk Should Factor into Mortgage Underwriting

Existing-home Sales Jump 14.5% in February: NAR

Fannie Revises Policy for Appraising Some Manufactured Homes

Opportunity to Purchase Assets at Reduced Cost Could be Fleeting: CBRE Survey

FHFA Delays Fee for Buyers with Higher Debt-to-income Ratios

Industrial Sector Shows Signs of Softening, Stabilizing, According to Moody’s

Hotels Located in Business Districts See Values Drop, Struggle to Refinance: Data

Pace of Interest Rate Hikes May Increase: Fed

Washington State Seeks to Drop Single-family Zoning