Know all the numbers!
We get the weekly mortgage application numbers and the existing home sales numbers, and they are weaker than last year, no big surprise, but of course everyone has to start screaming “Housing Bubble” and creating all kinds of drama.
There was no surprise that refinances are down 68% year over year, but that means we are doing 32% of the business we were doing last year. I would have thought refinances would have fallen off much further than that.
Next, we see that existing home sales were down, and we are now looking to close fewer resales than last year if current projections hold true. So, at first look, this may be challenging information, but let’s dig into it a little bit.
In 2021 it was estimated we had approximately 6.12 million resales. This was a record number of sales since 2006. The same 2006 when 30-year mortgage rates averaged about 6.41% and .5 points.
Now it is estimated that existing sales will come in at about 5.8 million units. This is certainly less than last year, but still higher than every year from 2007 to 2020!
Purchase business remains solid. Even refinances are stronger than I would have thought given the dramatic change in rates.
The point is, as professionals, we must provide accurate information and guidance for those who still want/need to buy homes! Great information and solid processes to quickly and easily move your buyer through the process to a QUICK closing will help you gather your fair share of the purchase business in your market!
If you need help with systems or strategies, it’s [email protected]
