Article By: Jim Porter – September 2, 2022
Mortgage demand was down 1.2% recently to a 22-year low. Interest rates creeped back up to a national average of 5.73%.
Refinance volume is down 83% from this time last year and new home sales are the lowest we have seen in five years. The supply of mortgage funds and loan officers available to deliver these funds to consumers is 10 times the amount needed for the current amount of demand.
More than 10,000 unique licensed loan officers funded at least one loan in Solano County in 2021, and there are only 500 home sales per month.
Other than this data, everything is just great. I am kidding, of course.
Since January 2022, I would estimate that more than 200,000 mortgage people have been laid off across the country. CNBC real estate correspondent Diana Olick reported recently something positive about the real estate market that supports what I have been saying for more than a year when I am asked about a bubble.
Olick says this is not a real estate recession, it is just a correction and nothing like 2008 because that crisis was caused by all the stated income and crazy ARM loans funded from 2003 to 2007. She also said there is a glimmer of hope because first-time homebuyers are starting to come back out and take advantage of this buyer’s market and the slight drop in prices.
In addition to the healthy existing homeowners who have low fixed-rate mortgages and equity in their homes, there is still a significant shortage of homes to meet the demand. If you need to buy your first home or move up to your forever home, now is not a bad time to start looking or at least look at what the numbers today might look like for your purchase.
Local lenders now have plenty of time to show you what all your options are today and there is no cost to find out.
Jim Porter, NMLS No. 276412, is the branch manager of Solano Mortgage, NMLS No. 1515497, a division of American Pacific Mortgage Corporation, NMLS No. 1850, licensed in California by the Department of Financial Protection and Innovation under the CRMLA / Equal Housing Opportunity. Jim can be reached at 707-449-4777.
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