The Mortgage Business has Changed in 2022

The mortgage business is changing in 2022 in a number of different ways. We are going to look at what is coming in 2022 for the mortgage business and the Real Estate business. Forecasting is not easy these days, especially when it comes to economics. For example, many economists who pay close attention to mortgage rates predicted that rates would reach around 3.5% by the end of 2021. In the second week of December, mortgage loan rates fluctuated around 3.1%.  They are rapidly rising and are now closer to 3.375% at the time of this posting.

Much of what makes predictions so challenging has to do with the inconsistent recovery from the pandemic. Last year, when mortgage rates started to rise in the summer, the Delta Covid strain came along and mortgage rates dropped. Then, mortgage rates started to rise again, the Covid variant Omicon struck and this time, mortgage rates didn’t drop.  In fact, as of now, mortgage rates are continuing to rise as inflation takes its toll on mortgage-backed securities. The course of the pandemic is too unpredictable and has a huge impact on our economy and the way we live. Even with all this inherent uncertainty, I feel confident enough to make some predictions about where homes might go in 2022.

As news of COVID-19 began to spread in the winter of 2020, mortgage rates have reacted by rising and falling in line with the latest news. And now that we have a vaccine, some see it as the reason the rates may start to rise. While mortgage rates will most likely rise in 2022 into the spring, we should see a return to the 3% mortgage rates by the summer of 2022 according to mortgage predicting expert, Barry Habib.

Housing inventory has been a problem for years. According to most experts, it should remain tight through 2023 but get a little easier to buy a home in 2022 as rates rise and push some people out of the market.  In the Dallas metroplex, we will continue to see inventory shortages as the demand outpaces supply.  I know that I have enjoyed the increasing values.  My own home has increased 55% over the last 4 years. All of this means that inventory conditions will remain tight in 2022. One way to overcome the inventory crisis is to increase new home construction. And the problems of the past year should inspire new builders to accelerate the construction of new homes.

I have as very good way to help my home buyers compete for good homes in 2022.  It is called the Certified Approved Home Buyer program.  Your purchase of a new home starts with shopping for the perfect lender, The Richard Woodward Mortgage Team. We offer a fully underwritten loan approval that has been signed off on by the person that makes the loan decision, the underwriter. And as a Certified Approved Homebuyer, you can have confidence and get your offers accepted more quickly than other buyers.  And this is where really quick approval can come. Let’s say you get an appraisal waiver and we approve your loan within one day, which means you get exactly the same performance as a cash buyer. You will need these tools to be competitive in your bidding and I have them.

As we have seen in the past few years, the entire home buying process has become more and more digital. Many of our platforms use artificial intelligence and other technologies to make the process faster, easier, and more efficient. We are providing more and more automation, speed and efficiency. We are approaching the point where we can offer instant approvals and loans with little or no action … Once a borrower provides their information and links their assets, we can potentially get their approval in seconds. Artificial intelligence is also helping to speed up the home buying process.

In years past, a person had to go through every document and information sent as part of the home buying process. This can take a long time, especially during the busiest times of the year. The AI ​​can now control many of these actions and perform them with greater precision.

The Biden administration and other Washington, D.C. authorities continue their efforts to expand homeownership opportunities in the new year. I expect government-sponsored HUD, Fannie, and Freddie will focus on affordable housing. Additionally, we’re likely to see many new products and new energy sources that provide homeownership opportunities in communities that have traditionally been undervalued by the market.” Perhaps these efforts Can help curb the house price rises we’ve seen in all markets.

But with all the things coming from Washington, the real question remains of whether and when the actual changes will actually be approved and implemented. While forecasting has been challenging in recent years, homeownership is still a great business. And while there have been many fears that our economy will recover from the pandemic, this is a prediction that we are not afraid to make.

Here are some of the new programs I have added for this year.

1. No income verified home loans.  This mortgage option is perfect for clients with hard-to-prove income.
2. No Mortgage insurance for loans up to 90%.  This can help when there is an appraisal shortage so the borrower does not have to pay mortgage insurance.
3. Mortgage rate Lock and Shop Program.  Great to help with rising interest rates.
4. Remember, with over 130 lenders, I will have a fit for your needs.  Check out all my loan programs here.  

Richard Woodward

Branch Manager,  NMLS 217454  

Voice/Text:  (214) 945-1066

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Nexa Mortgage  NMLS# 1660690   Plano, TX 75025