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Group's leader tells Oklahoma mortgage lenders: Fed's aim reflects stronger economy

The Federal Reserve isn't the main actor for leery lenders to watch in the long term, said David Stevens, president and CEO of the national Mortgage Bankers Association.
by Richard Mize Published: August 23, 2013

Mere spoken words can roil mortgage lending — and did, when Federal Reserve Chairman Ben S. Bernanke said in June that the Fed could scale back bond buying later this year: Loan rates are still heading up.

Wednesday's release of minutes from the Federal Open Market Committee's July 30-31 meeting confirmed a near consensus for a need to slow down “quantitative easing” — later rather than sooner. But the Fed isn't the main one for leery lenders to watch in the long term, said David Stevens, president and CEO of the national Mortgage Bankers Association.

Demographics — that's the thing, he told Oklahoma lenders Thursday.

About 70 percent of all households, counting renters and homeowners, are non-Hispanic white, he said, but only about a third of future households will be.

Blacks and Hispanics, who are comparatively younger and have more children, are driving the future of housing as whites age and have fewer children, he said.

Stevens guessed, correctly, that the demographics of his Oklahoma City audience probably did not match the future of its customer base. His flight from Chicago was canceled because of mechanical problems, and he spoke by phone as someone else presented his slides for the meeting at the Central Oklahoma Home Builders Association Event Center.

The Fed's aim to eventually scale back its $85 billion monthly bond buying, which keeps yields low — therefore helping keep mortgage rates low — comes in response to an improving economy, especially housing, which has begun returning to pre-recession levels of construction and home sales.

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by Richard Mize
Real Estate Editor
Real estate editor Richard Mize has edited The Oklahoman's weekly residential real estate section and covered housing, commercial real estate, construction, development, finance and related business since 1999. From 1989 to 1999, he worked...
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