The Ziman Center welcomed Vice President and Chief Economist at Freddie Mac, Dr. Frank E. Nothaft, on September 30, 2013 to share insights on the future of the housing market through his presentation, Housing & Mortgage Market Outlook: The Emerging Purchase Market. Dr. Nothaft spoke to an audience of over 70 UCLA students and alumni, discussing the rental and single family markets. Nothaft began by indicating that single family originations will likely drop down 25% in 2014 as the refinancing boom dissipates. Nothaft's multifamily market outlook suggested an oncoming compression, rather than an increase, in cap rates throughout 2014. Nothaft explained that while the cap rate spread is wide down, a tapering will be announced in early 2014. In the meantime, cap rates are expected to hold steady.
Students from various disciplines were able to attend the Nothaft speaking engagement, representing the UCLA Anderson School of Management, Luskin School of Public Affairs, and School of Law. One attendee inquired about how the increasing cost of education will impact the housing market. Nothaft replied that a limitation will be placed in January 2014 allowing no more than 43% of one's income to go toward servicing different debt obligations. Nothaft went on to say that young people have the same desire for homeownership as their predecessors, but that they also have the recognition that first-time home ownership must be delayed. Future buyers will be in their 30s to mid-30s, which will cause a slow decline in the national home ownership rates over time.
Nothaft was appointed to the position of chief economist in December 2001 and vice president in March 2004. In his roles at Freddie Mac, Dr. Nothaft is responsible for forecasts, research and analysis of the macroeconomy, housing and mortgage markets. Nothaft is also involved in affordable lending analysis and policy issues affecting the housing finance industry.
UCLA Anderson students, faculty and staff can watch the full Mediasite recording here (UCLA Anderson login required).
Recent Comments