Regulation & Policy
US Mortgage Market Outlook: Rate Sensitivity, Housing Demand, and GSE Reform
Published
Key Findings
For every 100bps decline in mortgage rates, 1-1.5 million additional households become eligible. GSE reform has been stalled for a decade but could be reactivated. Non-QM originations have grown to 15% of purchase mortgages.
The US mortgage market is adjusting to a higher-for-longer rate environment. This whitepaper models housing demand under various rate scenarios, covers GSE conservatorship reform prospects, and analyses mortgage servicing economics.