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. The pandemic exacerbated supply issues, leading to a competitive housing market, especially at the high end. The wealth gap is evident, with wealthier individuals benefiting more. The CARES Act provided crucial support through forbearance, but many homeowners still struggle. The market is dominated by fixed-rate loans, with 2020 seeing a significant refinance boom.

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

• High interest rates

• Decreased demand

• Increased construction

• Lack of supply

How has the wealth gap affected the housing market?

• High-end homes are struggling

• Entry-level homes are more popular

• High-end homes are performing better

• There is no effect on the housing market

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

• Increase in single-person households

• Surge of millennials reaching homebuyer age

• Aging population

• Decrease in urbanization

What percentage of homeowners took advantage of the forbearance opportunity at its peak?

• 12.5%

• 10%

• 8.5%

• 5%

What type of mortgage is most common for home purchases in the current market?

• Adjustable-rate mortgage

• 15-year fixed-rate mortgage

• Interest-only mortgage

• 30-year fixed-rate mortgage