What the FHFA credit score change could mean for the industry – Industry Outlook

A Key US Inflation Gauge Stayed at 6.2% in September

A recent report from the Commerce Department showed that prices rose 6.2% in September from 12 months earlier, the same year-over-year rate as in August. A measure of inflation that is closely monitored by the Federal Reserve remained high last month, the latest sign that prices for most goods and services in the United States are still rising steadily. Excluding volatile food and energy costs, so-called core prices rose 5.1% last month from a year earlier. That’s faster than the 4.9% annual increase in August, though below a four-decade high of 5.4% reached in February.

Source and link to the full article: A Key US Inflation Gauge Stayed at a High 6.2% in September (usnews.com)

 

US Mortgage Rates Top 7% for the First Time in 2 Decades

Based on Freddie Mac reports, the average on the key 30-year rate jumped to 7.08% from 6.94% recently. Average long-term U.S. mortgage rates topped 7% for the first time in more than two decades, a result of the Federal Reserve’s aggressive rate hikes intended to tame inflation not seen in some 40 years. Last year at this time, rates on a 30-year mortgage averaged 3.14%. Higher mortgage rates reduce homebuyers’ purchasing power, resulting in fewer people being able to afford to buy a home at a time when home prices continue to climb, albeit more slowly than earlier this year. The combination of higher rates and home prices means a typical mortgage payment for a homebuyer is up hundreds of dollars compared to what it was earlier this year.

Source and link to the full article: US Mortgage Rates Top 7% for the First Time in 2 Decades (usnews.com)

 

What the FHFA credit score change could mean for the industry

According to the Federal Housing Finance Agency plan announcement to replace FICO’s “classic” score with newer ones, and more flexible credit reporting could open up lending, but some are worried about unintended consequences and costs. Incorporating alternative data in scores and providing more flexible reporting could help more consumers qualify, but some fear it won’t help everyone. Some of the advances in the past decade not incorporated in the nearly 20-year-old classic FICO score or traditional reporting, like trended data, “could be advantageous to people who are working to reestablish credit,” said Shmuel Shayowitz, president, and chief lending officer of Approved Funding. However, he questioned whether they’ll be as much help to younger people who lack payment track records.

Source and link to the full article: What the FHFA credit score change could mean for the industry | National Mortgage News

 

Home prices cooled at a record pace in August

Based on the S&P CoreLogic Case-Shiller Home Price Index, home prices are still higher than they were a year ago, but gains are shrinking at the fastest pace on record. Prices in August were 13% higher nationally compared with August 2021. That is down from a 15.6% annual gain in the previous month. The 2.6% difference in those monthly comparisons is the largest in the history of the index, which was launched in 1987, meaning price gains are decelerating at a record pace.

Source and link to the full article: Home prices cooled at a record pace in August, S&P Case-Shiller says (cnbc.com)

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