As usual at this time of year, my crystal ball is a little cloudy, but 2022 is beginning to feel a lot like Groundhog Day. What will the future bring us in 2022? As my dear old granny used to say, one man’s misfortune is another man’s wealth. (Don’t blame me for the pronouns, this is from my granny.) Billionaires are building expensive space vehicles, yet all of the big cities are experiencing homeless families living in cars (not Tesla’s, they are too small).
There are a few states in which homes are still affordable. For instance, West Virginia, Alabama, Mississippi, Iowa, North Dakota’s housing prices have shown minimal increase but do require either snow blowers or buckets of mosquito repellent. Arizona will continue to entice those longing for a combination of economic progress and good climate with no natural disasters (so far). Our housing market is expected to expand again this year, but not the eye-popping increase we saw in 2021.
Interest rates are going to suck. (My apologies for the inappropriate language, I wish I could blame it on my granny.) Treasury yields, which determine our mortgage rates, are pushing higher at the fastest New Year pace seen in 20 years. That means higher mortgage rates, like, now. It could mean rates in the… (pardon me, while I use the F-word) four percent range.
Self-employed borrowers will suffer through another year of COVID overlays implemented in 2020 by the government, which were set to expire this month. Along with their tax returns, profit and loss statements, borrowers will continue to provide two months of up-to-date corporate bank statements to prove their business is viable. (Really, a comfort letter from a CPA, an internet site and an anal probe is not enough?)
The 2022 second home mortgage change is going to hurt. Second home purchases and refinances will have a substantial increase in mortgage rates, slapped on by Fannie Mae and Freddie Mac. (Borrowers swear they are buying a second home until they decide to VRBO after closing.) We probably won’t experience the increase until February or March. Just an FYI, occupancy fraud is the LEADING cause of mortgage fraud in the U. S. and is a class-four felony. So ask yourself, do you feel lucky? Or look fabulous in striped prison garb?
Many of us, especially those who have been sick or who cannot find a date, are welcoming 2022 with open arms.
We appreciate our family, friends, wonderful staff, semi-adorable children, and awesome clients for getting us through 2021. Here’s to a healthy and profitable 2022, we all deserve it!
As Always, we offer:
• CONVENTIONAL LOANS
• REFINANCE and CASH OUT REFI
• HOME IMPROVEMENT LOANS
• NON QM
• FOREIGN NATIONALS
• BANK STATEMENT PROGRAM
Like YOU we are always working. Call us anytime!