Mortgage Bankers Association Chief Economist on Rising Housing Prices and Falling Home Sales

The video discusses the rise in home prices, attributing it to low supply rather than low interest rates. It highlights the impact of the pandemic on housing supply and the wealth gap's influence on the housing market, with high-end homes performing better. The video also covers challenges faced by current homeowners, including forbearance and mortgage delinquencies, and concludes with an overview of loan types, emphasizing the prevalence of fixed-rate loans.

What is identified as a major factor contributing to the rise in home prices?

• Increased construction

• Lack of supply

• High interest rates

• Decreased demand

How does the wealth gap manifest in the housing market?

• Entry-level homes are more in demand

• Mid-level homes are declining

• Higher priced homes are struggling

• High-end market is stronger

What demographic trend is expected to drive housing demand in the coming years?

• Aging baby boomers

• Surge of millennials

• Increase in Gen Z buyers

• Decline in population growth

What percentage of homeowners were utilizing forbearance at its peak?

• 8.5%

• 5%

• 12.5%

• 10%

What type of mortgage is most common for home purchases?

• Interest-only mortgage

• 30-year fixed-rate mortgage

• 15-year fixed-rate mortgage

• Adjustable-rate mortgage