Are we headed to the next housing market crash? Looking at the headlines, it’s easy to think that a crash is coming soon! But let’s look deeper than the headlines to see what’s really going on in the market.
Let me help you dig deeper for clear information. Foreclosure rates have been a hot topic recently in regards to a market crash. With moratoriums starting to lift, the foreclosure rate is rising, as we all expected. However, rates will not be close to what we saw in 2019, which was a more normal market. Now let’s look and mortgage rates and actually take a look at a piece written by CNBC that stated, “Mortgage originations will drop 33 percent in 2022 as interest rates rise according to the industry forecast.”
But in order to see what they really mean by this statement, we have to look a little deeper. This piece goes on to talk about how to Refinance rates will drop 62%, but that “Mortgage originations, for the purpose of buying a home, are forecasted to rise 9 percent, to a record 1.73 trillion next year.” According to the University of Michigan Consumer Sentiment, in September of 2021, only 1 in 3 people thought it was a good time to buy a home. But with interest rates rising and appreciation rates still high, there is a whole different story that headlines aren’t telling us. Make sure you look deeper than the headlines when you are deciding if now if the right time for you to buy or sell!