Report of the 30-year mortgage's death was an exaggeration
If reform of the government-sponsored enterprises leads to the 30-year mortgage's demise, homebuyers' monthly payments could soar by $400, Zillow estimated. But lenders aren't convinced this housing finance staple is in danger of being replaced.
"The 30-year [conforming] fixed-rate mortgage isn't going away anytime in the foreseeable future," said Mat Ishbia, president and CEO of United Wholesale Mortgage. "That's not realistic. There is less than a 1% chance" of that happening.
"Could the world we live in change? Yes, the world we live in changes every day. However, will this extreme of a change happen? No, it won't, it wouldn't be good for consumers, it's not good for the housing industry," he said.