New initiatives for Native American housing, board expansion, and a look at consumer optimism
The Federal Housing Finance Agency (FHFA) has launched new partnerships with Fannie Mae, Freddie Mac, and the Federal Home Loan Banks (FHLBanks) to make housing more accessible for Native American communities. The initiatives are designed to improve credit access and provide financing options that meet the unique needs of tribal communities.
The FHLBank of Des Moines will work to promote Freddie Mac’s HeritageOne mortgage product to improve credit access for federally recognized Native American tribes residing on tribal lands.
Meanwhile, Fannie Mae will collaborate with FHLBank of Chicago to purchase loans through the Mortgage Partnership Finance (MPF) program. These loans will support Native American borrowers through the Native American Conventional Lending Initiative (NACLI), offering an additional option for securing financing on tribal trust lands.
“With their distinct charters and models for providing liquidity to underserved communities, Fannie Mae, Freddie Mac, and the Federal Home Loan Banks are combining their efforts to expand housing access in tribal communities,” FHFA director Sandra Thompson said in a Press release. “As Native American tribes face unique challenges in addressing their affordable housing needs, this collaboration among FHFA’s regulated entities will increase the impact of programs that offer solutions.”
This partnership builds on Fannie Mae’s commitment to Native American communities, as it already purchases HUD Section 184 Indian Home Loan Guarantee Program loans, which support homeownership for Native American borrowers. By purchasing loans from the MPF program, Fannie Mae said it will offer even more financing options, addressing the ongoing shortage of mortgage options available on tribal trust lands.
New board member
In other news, Fannie Mae has appointed Scott Stowell to its board of directors.
Stowell, who has nearly four decades of experience in the homebuilding industry, currently serves as CEO of Capital Thirteen. His previous roles include CEO of Standard Pacific Homes and executive chairman of CalAtlantic Group.
Fannie Mae said Stowell’s expertise in residential housing and affordable housing projects will strengthen its focus on addressing the ongoing shortage in the US housing market.
“With broad expertise across the residential spectrum, including single-family homes, mixed-use communities, and projects meeting local governments’ affordability requirements, we will benefit from Scott’s deep understanding of the homebuilding process as lack of supply and new construction issues persist in the US housing market," said Fannie Mae president and CEO Priscilla Almodovar.
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Homebuyer sentiment
Consumer confidence in the housing market has grown, with Fannie Mae’s Home Purchase Sentiment Index (HPSI) rising slightly by 0.7 points to 74.6 in October, its highest level since February 2022 and 9.7 points higher than this time last year.
While optimism is growing, high home prices remain a barrier, with only 20% of consumers considering it a good time to buy a home. In contrast, 64% see it as a favorable time to sell.
“While we have seen significant improvement in overall housing sentiment over the past two years, consumers’ perception of homebuying conditions remains strained, with only 20% believing it a ‘good time’ to buy a home, primarily due to high home prices,” Fannie Mae chief economist Mark Palim said in the report.
The October report also highlighted stable home price expectations, with 39% of respondents expecting prices to rise over the next year, while the share expecting prices to fall remained at 23%. Notably, 39% also predicted that mortgage rates would decline within the next 12 months, a survey high, while the share expecting rates to rise dropped to 22%.
“The share citing mortgage rates as the primary driver of their homebuying pessimism declined again this month,”” Palim said. “However, since the fielding of the survey primarily in the first half of October, mortgage rates moved sharply higher, which may serve to suppress some of the recently observed rate optimism.”
Fannie Mae’s consumer data suggests a shift toward renting for more individuals, as high prices and interest rates make homebuying less accessible.
“One effect of the prolonged period of relatively high home prices of the past four years is that we are seeing a slowly growing preference to rent rather than buy on consumers’ next move,” Palim added. “With rent growth expected to remain modest in 2025, more consumers may be seeking – and finding – attractive deals in the rental market as they continue saving toward a future home purchase.”
The report also found improved job security perceptions, with 79% of employed respondents saying they are not concerned about losing their job, an increase of two percentage points. The share of consumers reporting lower household income compared to a year ago remained steady at 11%, while those with unchanged income held at 70%.
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