The Belk College of Business recently hosted a two-day housing market outlook conference at UNC Charlotte Center City, which included a keynote address from Frank Nothaft, vice president and chief economist for the federal agency Freddie Mac.
According to Nothaft, there is a slowdown of home purchases in the fourth quarter of 2013, and he said he expects a better pace in 2014. He pointed out that house prices and mortgage rates are at a 60-year low, which have increased homebuyer affordability. Nothaft stated that the market is not robust since unemployment is still relatively high at 7.3 percent nationally and that 14 percent of the workforce is underutilized in the labor market. He said the U.S. housing market is transitioning and becoming more stable with demand and house prices increasing and every state is posting house price gains.
Following Nothaft’s presentation, there was a panel discussion moderated by Dustin Read, director of the UNC Charlotte Center for Real Estate. Panelists were Scott Frame, professor of business and finance, UNC Charlotte; Eric Locher, president, Charlotte Region Realtor Association; Phil Mahoney, president and CEO, American Security Mortgage; Wayne Passmore, associate director, Federal Reserve Board; and Jim Parrot, senior fellow, The Urban Institute.
Panelists discussed the government takeover of Fannie Mae and Freddie Mac, the Federal Reserve's massive investment in mortgage-backed securities and current U.S. housing market conditions as well as potential changes to government involvement in the housing finance system and their implications for housing.
Photo: Northaft (right) is interviewed by media following his presentation at UNC Charlotte Center City.