The National Association of Realtors’ (NAR) said today that existing home sales rose in November from 1.9% from Ocrober. On a year over year basis, NAR indicated that sales were 2.0% lower than this time last year. Our friends at CNBC and Reuters have great articles and predictions. See below for their links. We received some of our data from their articles.
A report from the Mortgage Bankers Association indicated the volume of mortgage applications slid to the lowest in nearly two years last week on the back of a 3% drop in applications for loans to purchase a home.
As we also reported last week, the Fed is tapering off bond purchases and indicated at least three rate hikes in 2022. So what does this all mean for the housing market and mortgage loans? I definitely believe we could see a spike in inventory soon.
NAR’s Cheif Economist Lawrence Yun said that sales likely increased due to a strengthening job market and concerns among potential buyers that mortgage rates will be significantly higher next year. According to data from mortgage agency Freddie Mac, the 30-year fixed-rate mortgage averaged 3.12% last week.
Inventory has been low for a long time now. And, we have recently seen home buyers express their concerns to us about rates ticking up. I do believe with people knowing the Fed will look to raise rates in April 2022, we will see more people making decisions right after the new year to sell their homes and get into a new home. I also see some potential for existing home owners to look to renovate their homes with a renovation type loan. At All In Mortgage, we have seen more inquiries in the last month about renovation loans. This activity could shape up to be a brisk start to 2022.
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Joseph S. Rychalsky
Senior Loan Officer/Co Founder
NMLS # 1396753
