The cost of originating a loan literally jumped from one quarter to the next, caused primarily by coping with compliance. What does this mean for the consumer?

Certainly, increased costs will be covered by higher fees and/or higher rates. Expect cash strapped first time buyers to be insistent on closing costs being paid by sellers. Will this put a strain on valuation when it is time to appraise?  Right now, this is not likely with the shortage of inventory. However, when things cool down (they always do) expect real challenges getting top value for a seller while the buyer seeks the concessions they need to close.

Nationally, we are in a housing recovery but from my view, it is tenuous.   In our region, the market is strong and will likely stay that way, unless rates take a ridiculous and unexpected jump.

What does this mean for you?  I recommend making hay while the sun shines.