Executive Perspectives Blog
There's a reason multiple offers on foreclosed homes are becoming so common in so many markets. Buyer demand is colliding with shrinking supplies of foreclosed (REO) homes. During the second quarter, HomeSteps, Freddie Mac’s real estate sales unit, sold nearly two homes for every one we took in.
Freddie Mac's latest U.S. Economic and Housing Market Outlook concludes that the nation's economy is gradually getting back to a more normal level of activity, and therefore we expect to see housing demand and supply increasingly driven by fundamentals – in fact, we've already seen this in some markets.
Last week, we announced our Second-Quarter Financial results, and it was another solid quarter for Freddie Mac – our 11th consecutive quarter of profitability.
Have you HARPed? A large number of eligible homeowners – who could save thousands of dollars a year on their mortgage payments – have yet to refinance through the federal Home Affordable Refinance Program (HARP). And the clock is gradually running out.
Given current trends in renting and multifamily rental-housing inventory, apartment demand should exceed supply for years to come. New construction by itself won't fill the gap. Additional investment needs to be made in existing units to keep them in active inventory. As part of this, there is a growing need to direct "flexible" capital into renovating, preserving, and, in some cases, transforming the nation’s aging rental-housing stock.