The Federal Housing Administration (FHA) has announced the new loan limits for 2022 and they…
The MartiniMortgage.com 2022 Housing forecast is curated by Certified Mortgage Advisor Kevin Martini and Senior Mortgage Strategist Logan Martini to go beyond the headlines and provide a glimpse of how the real estate market is forecasted to perform based on real data from the industry leaders like Fannie Mae, Freddie Mac, National Association of Realtors and Mortgage Bankers Association.
Spoiler alert, 2022 is going to be another strong year for the housing market!
Raleigh Real Estate Headlines and National Real Estate Headlines
The data suggests that if 10 people read a headline, only 2 will read the full article. Hence, 80% of readers never make it past the headlines! The readers perception is solely based on headline – we all know that perception does not always sync with reality. Here what is really alarming! A study done by Columbia University highlighted that 59% of links shared online never saccutally been clicked on.
Why is this important? It is important because headlines can be correct but not tell the entire story, let me share an example:
The headline of a recent CNBC article was: “Mortgage originations will drop 33% in 2022 as interest rates rise, according to industry forecast” — OH MY, that sound like the sky is falling! Yes, the headline is factually correct but you have to read the entire article to have context. In the article you will read that there is expected to be a drop of 62% mortgage origination for refinances HOWEVER mortgage origination for the purpose of buying a home is forecasted to rise 9% to a record 1.73 trillion in 2022.
Mortgage Rates in 2022
2022 will bring higher home loan rates. Fannie Mae forecasts a mid 3% interest rate for a 30-year fixed mortgage in 2022 and maybe in the upper 3’s by the end of 2022. Correct, this is higher than where we are today or where we were 12-months ago but by historical standards, home loan rates will be extremely low in 2022. Low home loan rates maximize affordability and amplify buying power.
The end result is if you wait to buy, the longer you wait, the more likely you will be paying more for the home and you will be paying more each and every month and more over the life of the loan too! In addition, you will be losing the equity appreciation between now and then — more on that later in this article.
When asking yourself, should I buy now or should I wait and the math is done, it is clear, that taking action now is much more advantageous than waiting.
NOTE: it should always be loan first & then go find your home. There is never a substitute to have price and cost clarity with certainty before you start search and fall in love with a place to call home. If you want or need trusted advice with a frictionless digital mortgage process that provides certainty, give the Martini Group at Cardinal Financial Company at call: (919) 238-4934
MartiniMortgage.com Home Price Forecast for 2022
In 2022, homes are forecasted to appreciate! The bull of the 6 major industry entities or experts is Fannie Mae with a forecasted 7.4% appreciation rate in 2022. The bear is the National Association of Realtors with a 2.8% appreciation forecast. (NOTE: there is not one major real estate or mortgage entity that is forecasting depreciation…they are all predicting an increase in home prices in 2022). The average of all the industry experts is 5.1% appreciation in 2022.
Home appreciation is not the only thing predicted to increase in 2022. The Mortgage Bankers association is projecting 7.5 million homes to be sold in 2022. Freddie Mac and Fannie Mae are suggesting that 6.8 millions homes will be sold in 2022. To share perspective, in 2020, since the 2021 data is not complete, there was 6.5 million homes sold.
Again, asking yourself, should I buy now or should I wait and the math is done, it is clear, that taking action now is much more advantageous than waiting. As I shared previously, the end result is if you wait to buy, the longer you wait, the more likely you will be paying more for the home and you will be paying more each and every month and more over the life of the loan too! In addition, you will be losing the equity appreciation between now and then.
Things to Consider when Buying a Home
The Martini Buyer Guide is a powerful resource that simply and effectively communicates the current opportunity and it is available for free by going to: MartiniBuyerGuide.com
NMLS 143962 | Certified Mortgage Advisor and Branch Manager | Martini Group at Cardinal Financial Company, Limited Partnership, NMLS 66247 | 507 N Blount St Raleigh, NC 27604 | (919) 238-4934 | www.MartiniMortgage.com | Kevin@KevinMartini.com | Equal Housing Opportunity
NMLS 1591485 | Senior Mortgage Strategist | Martini Group at Cardinal Financial Company, Limited Partnership, NMLS 66247 | 507 N Blount St Raleigh, NC 27604 | (919) 238-4934 | www.LoganMartini.com | Logan@KevinMartini.com | Equal Housing Opportunity