We like our "moments" to be black and white, but our world today is not always that way. What do you see in the mortgage industry? You have customers that hear today's media and what are the headlines? Rates at a new high! (Every week, right?) Prices are up again (every week!) It's out of our control and often, it isn't really the whole story. Where do we find ourselves today? Having to re-educate and un-shock everyone. So here's some ammo we can use.
Rates are up. Sure, if they remained low, we'd still be in a recession. Good for rates and bad for almost everything else. Prices are rising. Yes, when demand is greater than supply, that happens. But you know what else? The seller is getting more money for their home and that's appreciation. Conservative numbers show around a 6% increase in sales prices over the past 12 months. The truth is that rates are only slightly up and the positives offset the negatives. The Fed has done a great job moderating between growth/full employment and low inflation. Times are still good. If you buy new construction, by the time you get it done, comparable homes might even be selling for more. If you are selling, your buyer may have to pay above what that property would have sold for 6 months ago. It may not fully appraise but if they had a good agent and MLO, they know that and are prepared to move forward or get out of the way so that the others can do it.
Loan performance is excellent. Product availability is not bad. Non-QM and non-Agency is growing, and rates are outstanding unless you'd rather have a recession or depression. The reality of volume is that refinancing is down 30% and purchases up 5%.
Translation – Great market for buyers and sellers of real estate. Stay informed!