It's my personal estimate based on what I think earnings will be at a PE ratio of 8. I will not post this estimate as I don't have the time to rebut. It is my opinion and my opinion only. As rates slowly increase over time and affordable housing needed to be sustained, I believe the Fannie Mae and Freddie Mac model will not only sustain record numbers, but continue to increase it's production.
I also see a decrease in FHA first time homebuyers as I see those buyers switching to conventional loans by opting for the full 5% and 10% down instead of the FHA 3.50% down. This is mainly because the cost of upfront and monthly mortgage insurance has continued to increase over the last 5 years. Buyers are starting to deter from FHA and scraping the extra down payment. The mortgage insurance on conventional can be bought out upfront by sellers. If they chose the monthly MI on conventional loans, they are as much as 25% of the cost as FHA. FHA used to have a very reasonable monthly MI factor of 0.25 and has increased several times all the way to 1.35% today. On a $400,000, an FHA buyer pays $450/mo in MI. The financed MI on FHA has increased all the way to 1.75% or $7,000 financed into the balance of that same $400,000 purchase.
Fannie Mae will shine.
News 
Market Data 
Discover 
AI
