Episode 28: How an Adverse Market Fee Affected Home Affordability!

Forbearance data has decreased to 0.74% in July.A year ago, previous FHFA director Mark Calabria, hit the entire industry with a 50 basis point adverse market fee. A tax on the American homeowner of 50 basis points.Can we imagine what rates would be like right now when home affordability, according to the National Association of Realtors in June, hit like the lowest number in two decades or some crazy three decades?Do you imagine, what 50 extra basis points would be doing right now when we had the fastest rise in interest rates at the beginning of this year in the shortest amount of time ever? Anyway, good riddance to that fee.Housing has been a canary in the coal mine. It has been a signal for the broader economy.Housing led us out of the pandemic-induced recession and it seems to be leading us into whenever the next recession is.We already have two quarters in a row of negative GDP, which used to be pretty much a signal that we were in a recession. But job losses haven't really taken place and unemployment hasn't really ticked up. Time will tell, we will watch the data.Stay up-to-date on all the latest news, updates, and exclusive content by following us on all of our social media accounts! https://linktr.ee/kptalksdollarsandsense#KPTalks