WASHINGTON — Panelists at the second general session of the Mortgage Bankers Association’s (MBA) National Secondary Conference & Expo were all praises for the housing market, while executives from Ginnie Mae, Fannie Mae, Freddie Mac and the Federal Home Loan Bank spoke in detail about current issues affecting their respective organizations.
Paul Peterson, executive vice president and chief operating officer at Freddie Mac, said that while some in the market are concerned about rising interest rates and the corresponding upward movement in mortgage rates, increases may not necessarily adversely affect the housing market. For instance, though rates have now risen to the 6% level, this is low compared to the historical average of around 8.9%. The supply and demand dynamics in the market are also looking good. Currently, there is only about four months worth of mortgage supply but demand for the product remains robust.