National headlines keep reposting doom and gloom stories about our market.
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CNBC just reported that mortgage originations are going to drop by 33% in 2022. What are we gonna do?
I’ve said over and over again that headlines do more to terrify than to clarify. This CNBC article was posted on October 18, and the headline reads: “Mortgage originations will drop 33% in 2022 as interest rates rise, according to industry forecasts.” If you look down two more lines it says that refinance originations will drop 62% in 2022 to $860 billion. Right below that, it says that mortgage originations for purchasing a home are forecast to rise 9%.
Headlines do more to terrify than to clarify.
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The news is commercial. They're trying to get you to stop scrolling and click their article. They’re trying to scare you to get your attention. That’s why we keep seeing these headlines saying that the market's falling apart. In reality, all the industry experts are forecasting a continuing growth in home sales. 2022 is forecasted to be as good if not better than 2021 because of the large number of millennials that are looking to buy a home.
We have continuing supply chain issues and not enough existing homes to satisfy everyone that wants to buy. People are looking for complicated answers, but the reality is that demand is outpacing supply, and interest rates are remaining historically low. With money being so cheap, homes are very affordable, but every time a home comes on the market, lots of people want to buy it, which drives the price up.
If you're a seller, it’s still a good time to sell. Buyers, don't give up. Everyone, don't read the headlines. If you have any questions, don’t hesitate to reach out to me. I look forward to hearing from you.