Mortgage rates on the rise, Habitat for Humanity turns 50, and a new TV series to help seniors consider housing options. From the wild and wooly world of real estate, here are our Hits and Misses for the week of March 23-27.
Miss: Going Right in the Wrong Direction. Four weeks ago, the 30-year fixed-rate mortgage dropped below the 6% level for the first time since 2022. Since then, the mortgage rate has climbed week after week. On Thursday, Freddie Mac reported this mortgage rate hit 6.38%, its highest level since September. Sam Khater, Freddie Mac’s chief economist, tried to spin the bad news by declaring that “rates remain lower than last year when they averaged 6.65%.” Bill Pulte, Freddie Mac’s chairman and director of the Federal Housing Finance Agency, was conspicuously quiet about the new chaos happening on his watch. And speaking of Pulte…
Miss: Give it a Break. Pulte was busy this week filing new criminal referrals to reanimate the Department of Justice’s (DOJ) failed efforts bring indictments against New York Attorney General Letitia James over alleged mortgage fraud. This time around, Pulte contacted prosecutors in Florida and Illinois because those states are home to the companies that insured James’ property, which is based in Virginia. The DOJ’s efforts to secure an indictment in Virginia was a textbook example of prosecutorial incompetence – an indictment was dismissed by a federal judge because the prosecutor was unlawfully appointed and two subsequent attempts to re-indict failed when grand juries rejected the DOJ’s arguments. Lest we forget, the original Virginia prosecutor (a Trump appointee) resigned because the DOJ would not heed his warning that there was insufficient evidence to proceed with a case. Personally, I am not a fan of Letitia James, but I have to admit Pulte’s efforts are a waste of time. And speaking of doomed prosecutions…
Miss: Give it a Break, Part 2. One of the most surprising admissions was revealed this week via a newly unsealed court transcript. That admission was made by George A. Massucco-LaTaif, who is handling the DOJ’s investigation into whether Federal Reserve Chairman Jerome Powell committed perjury last summer during a Senate hearing on the cost overruns in the renovations of the central bank’s headquarters. CNN reports that Massucoo-LaTaif was asked by a judge during a closed-door hearing earlier this month, “What evidence is there of fraud or criminal misconduct in relation to the renovations?” His response was, “We do not know at this time. However, there are 1.2 billion reasons for us to look into it.” The judge wound up blocking the DOJ’s subpoenas of the Fed and Powell, ruling the administration “produced essentially zero evidence to suspect Chair Powell of a crime.” As with James, I am not a fan of Jerome Powell, but it is obvious this prosecution is going nowhere. The DOJ needs to wash its hands of this debacle, and quickly.
Hit: Doing the Right Thing. In fairness, the Trump administration – specifically, the Department of Housing and Urban Development (HUD) – deserves praise this week for investigating Washington State’s Covenant Homeownership Program, which agency believes may be in violation of the Fair Housing Act. The program provides downpayment and closing cost assistance for first-time homebuyers, but only if they are Black, Hispanic, Native American, Pacific Islander, or American Indian descent. HUD Secretary Scott Turner gave us the quote of the week by stating, “DEI is dead at HUD. Those who ignore the law and violate the rights of Americans for political purposes will not continue. As HUD Secretary, I will not stand for illegal racial and ethnic preferences that deny Americans their right to equal protection under the law.”
Hit: A Worthy Cause. This week, Habitat for Humanity launched its “Let’s Open the Door” global campaign to bring awareness of the worldwide housing crisis. This campaign coincides with the nonprofit’s 50th anniversary. Jonathan Reckford, CEO of Habitat for Humanity International, noted both the new campaign and the golden anniversary by stating, “Whether by lending your voice, your time, or your talents, you can help advance housing access, affordability and sustainable solutions, and help open the doors to homeownership for more families around the world.” Here’s to another 50 years of Habitat for Humanity making this a better world.
Hit: A Worthy Endeavor. Kudos to Bryan Devore of Berkshire Hathaway HomeServices California Properties, who recently launched “Senior Spaces,” a reality-based TV show now airing on Cox Cable, Roku, YouTube@SeniorSpacesTV, and in the San Diego area on KUSI News. This program is designed to guide seniors through the emotional and financial complexities of deciding how they will live the next chapter of their lives. According to Devore, “The process of deciding how to live the next chapter of life – whether it’s aging in place in their current home, or downsizing to a smaller home, or moving to a senior living community – can be a daunting and emotionally wrought process. The goal of the show is to show seniors and their families their options as well as all of the resources that are available to help make it happen.” Devore, a 23-year market veteran, represents the best of this industry, and here’s wishing his new series runs for years.
In Memoriam: David Simon. This week saw the passing of David Simon, CEO of Simon Property Group, at the age of 64 following a courageous battle against cancer. Under his leadership, Simon Property Group owned or held interests in more than 250 mall properties comprising over 200 million square feet across North America, Europe, and Asia, generating billions in annual revenue. Simon was one of the most successful and respected figures in commercial real estate, and we extend our condolences to his family, friends and colleagues.
Phil Hall is editor at Weekly Real Estate News. He can be reached at [email protected].
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