“One way in which I think the mortgage market in 2022 will help is to continue to address the affordability issue,” said Alli, who is also an advisory member of the MBAs Affordable Housing Council.
According to industry estimates, house prices have climbed at a record pace during the pandemic, with a median house price of $366,000 recorded in June 2021 – representing a 23.4% increase compared to same period in 2020.
And although there is evidence that the pace of home price growth is beginning to slow down, according to the latest S&P CoreLogic Case-Shiller national home price index, home prices still recorded a 19.5% annual gain in September.
Alli said: “There’s a lot of work being done in the industry – cross functionally – to identify ways in which we can continue to solve the issue of affordability. There’s a lot of different initiatives that will be needed in order to try to make a positive impact on affordable housing. There really isn’t one simple solution.
“But the collaboration across the primary markets, the lender base, along with the secondary markets, the GSEs and private capital, is going to be critical in making significant headway going forward.”