Fannie Mae’s Douglas Duncan reports that realtors and mortgage lenders are experiencing the impact of a significant recession.

by | Jan 2, 2024 | Recession News | 29 comments

Fannie Mae’s Douglas Duncan reports that realtors and mortgage lenders are experiencing the impact of a significant recession.




Douglas Duncan, Fannie Mae chief economist, and Don Peebles, chair and CEO of the Peebles Corporation, join ‘The Exchange’ to discuss home supply challenges, the shrinking appetite for refinancing, and ongoing strength in the homebuilders sector. For access to live and exclusive video from CNBC subscribe to CNBC PRO:

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With the ongoing economic downturn and the uncertainty surrounding the real estate market, Realtors and mortgage lenders are feeling the impact of a serious recession, according to the chief economist of Fannie Mae, Douglas Duncan.

The COVID-19 pandemic has caused a significant disruption in the housing market, leading to a decrease in home sales and a rise in mortgage delinquencies. With the unemployment rate skyrocketing and many people struggling to make ends meet, the demand for housing has decreased, leaving many Realtors and mortgage lenders in a challenging position.

According to Duncan, the current recession is unique in that it is impacting both the supply and demand sides of the housing market. On the supply side, construction activity has slowed down, and many potential sellers are holding off on listing their homes due to economic uncertainty. On the demand side, potential buyers are hesitant to make large financial commitments, and those who are looking to purchase a home may have difficulty securing a mortgage.

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As a result, Realtors are facing a decrease in the number of potential clients, while mortgage lenders are experiencing a decline in loan applications. This has led to a decrease in income for both parties, posing a serious challenge for their businesses.

In response to these challenges, many Realtors and mortgage lenders are adapting to the current market conditions by utilizing virtual tools and technology to showcase homes and process mortgage applications. Additionally, they are working closely with their clients to navigate the complexities of the current economic environment and provide support and guidance during these uncertain times.

Despite the significant challenges they are facing, Realtors and mortgage lenders remain hopeful for a recovery in the housing market. As the economy gradually starts to improve and consumer confidence is restored, there is potential for a rebound in home sales and mortgage lending activity.

In the meantime, it is important for Realtors and mortgage lenders to stay informed about the latest market trends and economic developments, and to continue to adapt their business strategies to meet the evolving needs of their clients. By staying proactive and resilient, they can weather the current recession and emerge stronger on the other side.

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29 Comments

  1. @BateserJoanne

    It's hard to predict the future until we see this month’s inflation results. However, historical data consistently show that stocks tend to outperform bonds in the long term. Therefore, I'm staying in the market and focusing on selecting high-quality stocks. The challenge lies in identifying these stocks.

  2. @chrisvause9227

    The wisest thought that is in everyone's minds today is to invest in different income flows that do not depend on the government, especially with the current economic crisis around the world. This is still a good time to invest in gold, silver and digital currencies (BTC, ETH…. stock,silver and gold)

  3. @VanPelt54u7fcyde57

    I wonder if people that experienced the 2008 crash had it easier because. my portfolio has lost over $27000 and I don't see my retirement turning out well when I can't even grow my stagnant reserve

  4. @LuccaWeber1

    Mortgage rates are currently at an all time high since 2000(23 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market.

  5. @fawadghani3952

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  6. @fawadghani3952

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  7. @fawadghani3952

    Mortgage all kashif real state properties

  8. @bernadofelix

    The effects of the downturn are beginning to sink in. People are being impacted by the long-term decline in property prices and the housing market. I recently sold my house in the Sacramento area, and I want to invest my lump-sum profit in the stock market before prices start to rise again. Is now the right moment to buy or not?

  9. @LR-pw9dd

    They screwed ppl w their BS bidding wars

  10. @pcvideos100

    You cant just borrow money, put it into an investment and make money above the interest rate. If you do, eventually every market gets over saturated with borrowed money and the Fed is the correction. Had those same investors had some skin in the game, or a value added business, there wouldnt be a bubble, inflation, the fed correction and a crash. SO lesson learned, next time there is low interest rates dont get reckless with the free money. It is the dumbest of all of us, or the least common denominator that is the problem.

  11. @backrack01

    People are desperate to sell. I know my Americans well. If they want something.. it never leaves their mind. They will always find ways to rationalize what they want.

  12. @user-ob4em4ge6c

    Home values are declining in every state.

  13. @tessbakker7549

    I will forever be indebted to you, you've changed my whole life and i continue to preach your name to the whole world to hear you've saved me from a huge financial debt with just little investment, Thanks so much Mrs Paula David.

  14. @ryanhoot

    There will be no pull back i rates next year. Why would the fed pull back? No need.

  15. @ryanhoot

    builders are going to be squeezed by lumber prices and other costs. builders will slow 2024

  16. @ryanhoot

    Fannie Mae…i want some chocolate

  17. @ryanhoot

    Mortgage companies are offering free refis within the next 5 years. imo, rates will not come down for 3+ years

  18. @RebeccaBang

    From what I know about assuming a loan, that guy was way off. It has nothing to do with making the interest whole but you do have to have a buyer that can pay the EQUITY difference in cash to the seller. The fact that he was way off base on that simple question makes me wonder if he knows what he's talking about on anything else he said.

  19. @TeresaBrickle

    Do I just keep waiting for a housing crash with my $2 million in liquid assets or shift my attention to the equity market? Mortgage rates are currently at an all-time high since 2000 (23 years), and based on statistics on inflation, we might see that number skyrocket even further.

  20. @motownmaniac43

    The current interest rate just doesn’t make sense to upgrade even if affordability doesn’t matter. 7% rate is ridiculous.

  21. @toucantee

    Don’t know what he is talking about, I see people flipping houses all over the place

  22. @Tantoun1985

    The only solution to the housing problem is to have a law preventing the big firms of buying houses. This will create a plethora of inventory

  23. @GoldSack210

    No one is buying A bank's going to collapse the real estate market is over with in America is it interest rates are gone almost double digits nobody gets prime rate you got to pay points on the back and the yield is higher than what the banks want to tell you usually somebody about a year into this so the news will come out some maybe this weekend people see the houses prices collapsed 50% all the new buyers are underwater and they have to overcash the banks take the house foreclosures and moving higher

  24. @garcesjohan

    You guys were selling REITS a week ago

  25. @kaisersouze41

    No wonder all these agents/lenders flood social media with their FOMO. I feel sorry for people buying in this market. 3-5% down. How quick will it take them to be underwater??? But don't worry about their agent. They got paid and forgot about them a lonnnnnnnnng time ago

  26. @ramonmendoza566

    Take it subject to the existing note.
    Don't assume it

  27. @selenajack2036

    I just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $200k gains with months, I'm really just confused at this point.

  28. @johnnyreyesrealtor309

    I saw it coming and gotna job and real estate part time. My only listing which I currently have has been reduce by 25k and only 3 Realtors have seen it it two months. Very few pendings and tons of active.

  29. @zwatwashdc

    Come on. The only way real estate and mortgage professionals feel hard done by at this point is pure greed.

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