Trending Topics

Most Popular Searches

4 reasons the mortgage business may stay brisk this fall

October 3, 2016 | By and

Just coming off the “best summer for the housing market in a decade,” new data suggest the good times may continue to roll. Fannie Mae’s third quarter 2016 Mortgage Lender Sentiment Survey® found 28 percent of lenders said they expect their firm’s profit margin to increase over the next three months.

“More lenders, on net, reported a positive profit outlook for the third straight quarter, the first time that has happened since the survey’s inception,” says Doug Duncan, senior vice president and chief economist at Fannie Mae. “Their perception of profit outlook in the third quarter of this year is in stark contrast to the third quarter of 2015, when a sizable net share of lenders expected a deteriorating profit outlook over the next three months.”

Their optimism is shared by consumers who are finding employment and regaining confidence in the housing market.

With that in mind, here are four reasons the housing market will likely stay hot well into the fall.

  1. Strong Demand

The latest Realtors’ Confidence Index from the National Association of Realtors® (NAR) shows very strong buyer demand throughout the United States. Nationally, amid tight supply, half of properties that sold in August 2016 were on the market for 36 days or less compared to 47 days one year ago. Jonathan Smoke, chief economist at, says the strong job numbers released in September support demand for housing.

More: Can Higher Education Help Boost Homeownership?

  1. Increasing Supply…Soon

The supply of unsold inventory was 4.6 months in June, according to NAR. A “normal” unsold inventory supply is typically between six and seven months, Duncan says.

But as builders regain confidence in the market, new construction of single-family homes is projected to continue to increase over the next two years, reaching historic levels by 2017. August’s new home sales numbers show that many buyers who have not been able to find their dream home within the existing inventory have turned to new construction to fulfill their needs.

  1. Faster Time to Close

According to Ellie Mae’s Origination and Insight Report released in August, the time to close refis dropped from 48 to 46 days, and the time to close all loans remained steady at 44 days.

More: A Housing Economist Shares What He Expects For the Rest of 2016

  1. Homes are Still a Good Investment

CoreLogic says 548,000 U.S. homeowners regained equity in Q2 2016 compared with the previous quarter, increasing the percentage of homes with positive equity to 92.9 percent of all mortgaged properties, or approximately 47.2 million homes. Nationwide, home equity grew year over year by $646 billion, representing an increase of 9.9 percent in Q2 2016 compared with Q2 2015.

“We see home prices rising another 5 percent in the coming year,” says Anand Nallathambi, president and CEO of CoreLogic.


Estimates, forecasts, and other views expressed in this article should not be construed as indicating Fannie Mae’s expected results, are based on a number of assumptions, and may change without notice. How this information affects Fannie Mae will depend on many factors. Neither Fannie Mae nor its Economic & Strategic Research (ESR) group guarantees that the information in this article is accurate, current, or suitable for any particular purpose. Changes in the assumptions or underlying information could produce materially different results. The ESR group’s views expressed in this article speak only as of the date indicated and do not necessarily represent the views of Fannie Mae or its management.




We appreciate and encourage lively discussions on our websites’ content. While we value openness and diverse points of view, all comments should be appropriate for people of all ages and backgrounds. We do not tolerate and will remove any comment that does not meet standards of decency and respect, including, but not limited to, posts that:

  • are indecent, hateful, obscene, defamatory, vulgar, threatening, libelous, profane, harassing, abusive, or otherwise inappropriate
  • contain terms that are offensive to any group based on gender, race, ethnicity, nationality, religion, or sexual orientation
  • promote or endorse a product, service, or vendor
  • are excessively repetitive, constitute “SPAM” or solicitation, or otherwise prevent a constructive dialogue for others
  • are factually erroneous or misleading
  • threaten the privacy rights of another person
  • infringe on intellectual property and proprietary rights of another, or the publication of which would violate the same
  • violate any laws or regulations

We reserve complete discretion to block or remove comments, or disable access privilege to users who do not comply with this policy. The fact that a comment is left on our website does not indicate Fannie Mae’s endorsement or support for the content of the comment.

Fannie Mae does not commit to reviewing all information and materials submitted by users of the website for consideration or publication by Fannie Mae (“User Generated Contents”). Personal information contained in User Generated Contents is subject to Fannie Mae’s Privacy Statement available here. Fannie Mae shall have otherwise no liability or obligation with respect to User Generated Contents and may freely copy, adapt, distribute, publish, or otherwise use User Generated Contents without any duty to account.

A Window Into Housing In America

Subscribe to our newsletter for each week's top stories. Enter your email address below to stay in the know.