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LendingHome’s Week in Review is here to provide you with news that you might have missed this week.
Why Can’t They Build More Homes Where the Jobs Are?
Low housing inventory is a problem nationwide, but it's even worse in areas with strong job growth. The San Francisco Bay Area "added 373,000 new jobs in the last five years - but issued permits for only 58,000 units of new housing." Lawrence Yun, NAR chief economist, said there is "historically one new housing unit for every two jobs created." California cities, including Riverside, San Jose, Sacramento, San Diego, and San Francisco, are in the Bureau of Labor Statistics' list comparing the ratio of new jobs to housing permits from 2012-2016. San Francisco was at the top with 6.4 jobs per permit. Yun said, "either the builders build homes, or real estate investors unload homes onto the market."
Housing Remains a Bright Spot for Economy
Freddie Mac looks at the impact that housing is having on the economy. According to Freddie Mac, "We expect housing starts and home sales to firm in the coming months and for 2017 to exceed 2016's best-in-a-decade levels." It also predicts where homeownership might be headed. Some topics covered are about how experts are pessimistic about the future of homeownership, student loans, and the future of housing.
Fannie Mae Announces Policy Change for Homeowners with Student Debt
"Fannie Mae updated its Selling Guide to permit originators that sell loans to the mortgage giant to offer a new refinance option for the purpose of paying off a student loan. Proceeds from the refinancing will go directly to the student loan servicer to fully pay off at least one loan. The policy change will likely have the effect of greater availability and lower interest rates for homeowners refinancing their mortgage to pay off student debt."