Rates are up, home prices don’t care.
Watch the original video: Rates are up, home prices don't care.
Monthly Mortgage Market Update for February 2022. In this month’s video I talk about current mortgage rates, the factors that are affecting the rise, and new loan products available. Watch the video above to learn more. (Below is a summary of each topic I discussed in the video)
📈 Rates are Up.
Mortgage rates are up around 50 basis points since the first of the year. I have been warning you about rates rising for almost five years now, but it is finally really happening. In February alone, they have already risen half of a point from where they were at the start of 2022.
We can accredit a majority of this increase to the on-going inflation issues in America. Recent Consumer Price Index reports have revealed that inflation is currently at 7.5%, the highest it has been since 1981. On top of that the Federal Reserve is adjusting their monetary policy, which has indirectly caused chaos in the financial markets.
🏦 Will the Market Crash?
The biggest question right now is ‘Should we wait?’. Many are wondering if the market will crash and although no one really knows, the evidence shows that the market is going to remain strong. There are simply not enough homes for sale to meet the demand of buyers. I heard a statistic recently that, even if builders rush to meet demands and try to replace the inventory that we have been behind since 2009, we would still be short one million units a year to meet the demand and population that has been growing in the United States.
🏘 New Products on the Market
We are beginning to see new loan products hit the market. There are some great products that we are offering for self employed borrowers and for investors that are looking to buy short term rental properties. As the margin for short term rentals continues to increase and remains much higher than that of a 6 month or one year lease, there are many buyers looking to purchase a short term investment property. These loan products can be a great asset to these types of buyers, and could possibly help you. I would love to tell you more about our wide range of loan products; please reach out so we can find a loan that works best for you.
🙏🏽 Thank You
I would love to take a moment to thank all of you for the amazing support we received last month. Many of you sent over some amazing referrals and we also welcomed back some return clients. The impact of this support is not lost on me and I feel so privileged to be a part of this amazing community. Thank you again.
If there is anything I can do for you or any question you may have, please do not hesitate to reach out, I would love to be a resource for you. I hope you enjoy the amazing weather we are having. God Bless and talk to you soon.