- InGeniusly Speaking
- Posts
- Psych!
Psych!
By Jeff Walton & Kelly Guest
The affordability issue in today’s market is greatly in our heads, according to an opinion piece in National Mortgage News. Mphasis Digital Risk SVP Kimberly Lanham writes that all the pearl-clutching over affordability is part of a grand illusion: “Influencer culture has upended consumers' sense of normal,” she says, and cautions about how much social media doom-casters are affecting the home buyer pool. Lanham makes the case that the “crisis” is at least half psychological.
Meanwhile, as Zillow introduced its altruistically described “personalized buyer hub,” Homing CEO Dean DiCarlo examines the role of AI and portals in the evolving real estate landscape in HousingWire, explaining who can win going forward – and how.
Table of Contents
CHATTER
House & Senate Passed 21st Century ROAD to Housing Act – MBA Applauds
Zomething Zneaky?
Creeping into the Mortgage Process: Zillow Rolls Out Buyer Hub
Zillow® is launching a personalized hub that guides home buyers through every step of their purchase in real time.
The new personalized hub guides buyers through four milestones: setting a budget, finding a home, making an offer and closing the deal. It brings together goals, finances, tasks, documents, and the agent and lender a buyer is working with, all in one place. And all of those details update automatically as the journey evolves, so buyers always know where they stand and what to do next.
Real Estate Ruse?
Social Media Hysteria: Affordability Crisis is Only Partially Financial - NMN
From the article: Across studies, survey responses, and homebuyer datasets, a pattern emerges: social media has dramatically reshaped what younger buyers believe a starter home should look like, while simultaneously eroding their confidence in the attainability of homeownership. These forces have combined to form a perception crisis — so powerful that it convinces buyers that the market is out of reach even when their financial situation says otherwise.
Portal Race: HW Opinion Piece
A great look at all the M&A among portals, the Fathom/Bed, Bath & Beyond acquisition, and other big moves. This article explains what AI will take over – and what it won’t. Points out vulnerabilities for various players.
Broker Focus: Partners & Non-QM
Interesting Findings: A&D Mtg Professionals Puls & 2026 Outlook
Top strategic goals this year for mortgage brokers:
Overall Consensus, Differing Motivations
Americans Want Government to Help with Affordability - Redfin/Ipsos Survey
83% of Democrats say there should be policies that make homes more affordable, as do 74% of Republicans.
85% of Democrats say there should be first-time buyer tax breaks, and so do 77% of RepublicansThree-quarters (76%) of U.S. residents say there should be caps on rent increases, 75% believe there should be initiatives for building homes for low-income families, and 74% think there should be programs for down payment assistance.
Just over half (54%) say there should be policies that make it easier to build homes in their area—the lowest share among the policies Redfin asked about, but still majority support.
Though the survey indicates bi-partisan agreement of results, the policies to reach them likely differ greatly.
Justifying Existence: First American Publishes White Paper on Title Insurance
The company created the piece in response to policy makers considering loosening/eliminating title insurance requirements in some transactions to increase affordability.
First American says title insurance helps ensure the integrity of property records and warns that eliminating requirements would shift risk/loss to lenders, homeowners, and possibly taxpayers.
VA Moving into Digital Age: MISMO Publishes Doc Mapping for Eligibility Docs
Eligibility determination for VA loans has traditionally relied on document-driven workflows that introduce manual effort, inconsistent interpretation, and delays. These mappings support the digitization of VA loan origination by standardizing key eligibility data, such as prior VA loan usage, entitlement purpose, and military service details. By enabling machine-readable data exchange, the specifications reduce rekeying, accelerate eligibility validation, and improve turnaround times.
Improving Servicing? Dovenmuehle Debuts Diagnostic Tool to Improve Onboarding
MOVING & SHAKING
Two Harbors Pushes Vote Back: NMN
It’s the 3rd delay. Vote may take place 7-2.
Finance of America announced the appointments of three senior leaders to its leadership team across brand, communications and product: Colm Murphy joins as Chief Brand Officer, Jordan Baucum as Senior Vice President of Communications, and Mike Urban as Chief Product Officer.
Mountain One Financial named Edward Alfieri SVP of Operations.
Click n' Close appointed Merv Govender Chief Information Officer.
MARKET/INDUSTRY
A Great Week: Last week had a lot of good news for the mortgage industry in spite of high PCE. Bill Bodnar tells us what to watch this week in his latest Master the Markets segment.
Mortgage Rates Average 6.49%: Freddie 6-25-26
Mortgage applications increased 1.0% from one week earlier: MBA Weekly Survey for the week ending 6-19-26.
Homebuyer affordability declined in May, with the national median payment applied for by purchase applicants increasing to $2,198 from $2,152 in April. This is according to the Mortgage Bankers Association's (MBA) Purchase Applications Payment Index (PAPI).
“The decrease in affordability was widespread, with conditions declining in 33 states. While affordability conditions remain improved compared to a year ago, the monthly increase underscores how sensitive prospective homebuyers remain to changes in interest rates and home prices.” - Edward Seiler, MBA’s Associate Vice President of Housing Economics
May New Home Sales Slow: Census/HUD
Sales of new single-family houses in May 2026 were at a seasonally adjusted annual rate of 580,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 7.3% (±13.3 percent)* below the April 2026 rate of 626,000, and is 6.8% (±12.8 percent)* below the May 2025 rate of 622,000.
Sellers Giving it Up: Redfin Highest Recorded # of Sellers Gave Concessions in May
Nearly half of U.S. home sellers gave concessions to buyers in May, the highest May share in our records
Concessions were most common in Nashville, the nation’s strongest buyer’s market, where three-quarters of sellers handed out concessions to attract buyers.
They were least common in the Bay Area and other markets that are tilting toward sellers.
16% of May’s home sales had both a concession and a price drop, also the highest May share on record.
(Refin’s records extend back to 2017.)
Better Buyer Attitudes: BofA Home Buyer Insights Report
This year’s Homebuyer Insights Report survey data reveals meaningful changes in attitudes toward homeownership. The study finds that for the first time since 2023, more Americans favor buying a home (53%) over renting or moving in with family (47%).
Prospective buyers increasingly point to affordability as the top barrier to homeownership, with expensive home prices (58%, vs. 46% in 2025) and high interest rates (47%, vs. 40% in 2025) leading the way.
However, more prospective buyers (79%) say they plan to move forward regardless of market conditions, signaling a shift from waiting to acting.
Technology and social dynamics are playing a growing role, with one in five buyers using AI tools and younger generations increasingly influenced by social pressure and evolving expectations around homeownership.
More Investors Buying than Selling: Realtor.com
Buying: Investor buying picked up slightly in 2025, but generally held steady compared to the past few years. Investors comprised 11.3% of home purchases in 2025, up 0.3 percentage points compared to 2024.
Selling: Investor selling activity slowed in 2025, but remained above pandemic- and pre-pandemic-era levels as a share of home sales. Investor sales comprised 9.3%% of total home sales in 2025, the same share as in 2024.
Small investors continue to be the dominant force behind investor purchases, comprising about two-thirds of all purchases.
Large and mega investors have seen the biggest pullback. Mega purchases are down almost 70% compared to their 2021 peak, and large investor purchases are about 30% lower.
Rate Resilience: VantageScore’s May CreditGauge
Consumer credit performance remained healthy in May 2026. Delinquency rates across all delinquency stages remained below pre-pandemic levels, suggesting that most borrowers have successfully adjusted to a prolonged, higher-rate environment despite ongoing affordability challenges. Meanwhile, the average VantageScore 4.0 credit score held steady at 701, reinforcing the overall stability of consumer credit health. Together, these indicators point to a resilient consumer credit landscape, even as elevated interest rates and cost-of-living pressures persist.
Housing Shortage to Shift Dramatically: MBA White Paper
Implications of a Persistent Slowing in Housing Demand examines how demographic, economic, and housing market trends have evolved since the financial crisis and assesses their implications for future housing demand. The report analyzes changes in household formation, housing construction, affordability, and population growth, and explores how slowing demographic growth may affect housing supply-demand balances, home prices, and mortgage market activity over the coming decade.
Note: Political leanings may influence reactions to and weight given to this report.