Wow, it’s already December! Our West Virginia Bankers Title team wishes you all a happy holiday as we enter into the final month of the year. The most important part of this joyful season is spending time and catching up with our loved ones. We hope this time of year is full of joy and happiness!
With 2022 on the horizon, there are predictions from Fannie Mae, Freddie Mac, and others regarding coming mortgage rates in the new year. According to Alisa Wolfson of the Marketwatch, a handful of real estate pros expect mortgage rates to rise to around 3.4-3.6%. As economic growth continues in the US, mortgage rates are predicted to increase as well.
As we make our way into 2022, we want to thank all our attorney, bank and lender friends for trusting us with your transactions this year. No matter the obstacle, everyone managed to overcome any problem and never stopped working hard over the past year.
Have a wonderful month!
Bob Drummond, Vice President/Agency Manager of West Virginia Bankers Title
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Lindsey Waggamon recently joined West Virginia Bankers Title as an administrative assistant. She was previously employed in the property and casualty insurance industry for 4 years. She grew up and still currently lives in Pleasant Valley with her husband Joe and daughter Aubrey. In her spare time, she loves to spend time with family and pets. Welcome to the team, Lindsey!
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Existing-Home Sales Rise As Demand Continues |
Home sales have remained resilient despite the usual expectations that the market would slow down come the last quarter of the year, which is great news to hear as we wrap up 2021. The steady increase in sales is primarily due to low interest rates and job growth. Not to mention the median price for an existing home sold for $353,900, up more than 13% from the previous year. Overall, this is excellent news and goes to show how strong the real estate market is despite challenges from the pandemic in the last couple of years.
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Housing Market Potential Strengthens Modestly |
Not only are existing home sale numbers rising, but, as the National Mortgage Professional explains, household formation grew over the last year. Millennials are primarily driving this formation as more and more start to become homebuyers. As Mark Fleming, First American’s chief economist, puts it, “Millennials are widely expected to continue to form households, boosting demand for homes. Strong demographic demand will continue to act as the wind in the housing market’s sails.”
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October Saw Mortgage Apps Rise for New Homes by 6% |
Applications for mortgages rose in October, which speaks to the fact that existing-home sales are rising too. On a month-to-month basis, activity was 6% higher in October than in the previous month. The strong monthly gain puts MBA’s estimate of new home sales at its strongest pace since January 2021, according to a monthly builder survey published by the Mortgage Bankers Association.
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Over the last few years, technological advancements have significantly affected how the real estate market runs, which is no surprise to anyone. As the market continues transforming and adjusting alongside technology, different organizations are leveraging the digital age to help increase access to homeownership, such as Fannie Mae. Joe Hallett, Vice President of Fannie Mae, explains, “A key area of focus for the housing industry in advancing the digital mortgage has been to leverage technology and new digital innovations to help improve the consumer experience while applying for a mortgage.” In the eyes of Fannie Mae, the digital mortgage transformation should be a digital, transparent, simple, and more inclusive lending process.
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As the year comes to a close, it is essential to note what economists predict for the real estate market in 2022. This Marketwatch article gives insights from all different real estate organizations. For instance, Fannie Mae expects that mortgage rates will climb to an average of 3.4% for a 30-year fixed-rate loan next year, Freddie Mac comes in at 3.5% in its October quarterly forecast, and the Mortgage Bankers Association predicts a rise in rates to 4% by the end of 2022.
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More and more millennials are becoming prospective homebuyers, so some cities are taking initiatives to assist this group. For instance, Boston, where there has been a housing shortage, has been looking to ramp up the supply. Likewise, Boston leaders are aiding millennials by pointing them to various programs that help to provide younger people with a more straightforward path to homeownership.
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Recent years have been tough for renters, but cities and states are coming to the rescue after passing dozens of new protections for renters. These include protections from rent increases as well as further rights to legal representation. For example, after losing over 20,000 residents, the city of Santa Ana, California, passed a bill limiting rent increases in most buildings to no more than 3% during any 12-month period. Not only that but several cities and states have passed legislation guaranteeing renters at risk of eviction the right to legal representation.
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Head into 2022 with engaging social media! |
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The WVBT team wants to wish all our partners and customers a Merry Christmas and a Happy New Year. Speaking of the season, if improving your social media game is on your list of resolutions for 2022, we wanted to share this simple tip.
If you are only using it for the sake of “contact me today” or “look at what I did” type posts, it’s time to strike a more personal tone. The goal for social media should be engagement and top-of-mind awareness. Crowdsource with questions and show some personality. Anything can be conversation starters that keep people coming back to your page again and again! Be sure to follow us on Facebook, LinkedIn and Twitter, too.
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