Mortgage and Real Estate Market Update For 2022 are supposed to remain strong with homes more in demand than in recent years. The Housing Market Forecast for 2022 is expected to be strong. After the stock market selloff due to the fear of the coronavirus, the 2022 Real Estate Market forecast remains strong, if not stronger. The Dow Jones Industrial Average is pushing the market into correction territory. A market correction occurs when the financial markets sell-off 10% or more in a short period of time. The financial markets enter into a Bear Market when the numbers drop 20% or more in a short period of time.
Mortgage and Real Estate Market Update For 2022 With Equity Markets Volatility
The equity markets are extremely volatile. After the Dow fell over 3,500 last week, the Dow surged 1,293 on Monday in hopes of the Central Bank lowering interest rates by 50 basis points. On Tuesday, the Federal Reserve Board lowered interest rates by 50 basis points in an emergency rate cut. Once Fed Chairman Jerome Powell spoke on Tuesday, the markets tanked again because the market did not like the way Powell spoke. Powell showed fear, uncertainty, and a lack of confidence. This pushed the markets lower by almost 800 points at the close.
Dow Jones At Historic High: Danger of The Dow Plummeting On Any Tick Of Bad News
On Tuesday, the markets rebounded due to the results of Super Tuesday. The markets liked the fact that Bernie Sanders has no likelihood of winning the Democratic nomination for the 2020 Presidential election. Mike Bloomberg was the latest candidate to suspend their campaign. With all of this bad news in the financial markets and the 10-year yield on treasuries falling under 1.0%, mortgage rates are getting slammed hitting record low rates. Whenever the stock market drops, it sends mortgage rates lower. Low mortgage rates spike home sales. In this article, we will discuss and cover the 2020 Real Estate Market And What Homebuyers Need To Know.
How Will The 2020 Real Estate Market Affect Homebuyers
One of the most commonly frequently asked questions by realtors, loan officers, buyers, and sellers is “How’s the market?” There is a difference between how the housing market has been and how it will be in the future. Nobody has a crystal ball on how the markets will do in the future. This holds true to all markets: the financial markets, the bond markets, the mortgage markets, and the housing markets.
Mortgage and Real Estate Market Update: The Trump Economy
The U.S. economy has been booming since the Trump Administration. Unemployment rates are at a 50-year low. The Dow Jones and other markets have hit an all-time historic high. Unfortunately, the financial markets are currently going through a correction and are extremely volatile due to the coronavirus fear. The economy is fundamentally strong. President Trump’s tax cuts really stimulated the economy. The Trump Administration is thinking about launching the Trump Tax Cuts 2.0 to make sure to add fuel to the fire so the economy does not go into recession. Wages are increasing and are at an all-time high.
2022 Mortgage and Real Estate Market Update: Real Estate Market Dependent On Consumer Confidence On Job Stability And Economy
One of the biggest factors affecting the 2022 real estate market is consumer confidence in the economy. The economy needs to be strong for homebuyers to have the ability to repay their mortgages. All the right things are in place. The lowest unemployment numbers in 50 years. The stock market hitting record levels. No signs of a recession. Home prices rise year after year. Trump believes in tax cuts to stimulate the economy and have consumers spend and invest. President Trump has made our country strong and Biden takes office to ruin everything Trump has accomplished. Joe Biden has now been President for a year and he has done more damage than any other U.S. President.
Strong Stock Market Is A Great Economic Indicator For Americans
Today, the Dow surged 1,173.45 because Bernie Sanders is out of the 2020 Presidential Race. Sanders did not do too well yesterday in the Super Tuesday Democratic elections. It seems the front runner is former Vice President Joe Biden who has early signs of dementia and has done absolutely nothing in his 50-year political career. The only way Joe Biden will get elected President of the United States will be through cheating. The markets do not like Bernie Sanders. Sanders is a socialist who wants to tax the middle class and the wealthy. Sanders wants a 90% death tax, medicare for all, and free education for all which means major tax hikes for any American making $29,000 or more. Homebuyers will not pull the trigger on a home purchase unless they feel secure about their job stability, future earnings, the economy, and their future earnings. The Trump Administration has all of the right formulas for economic success for homebuyers.
What Does The 2022 Real Estate Market Forecast Look Like For Homebuyers
Mortgage and Real Estate Market Update: Housing Inventory Versus Demand Of Homes
The housing market has been hot for the past several years. Year after year, the demand for homes far surpasses the inventory in the marketplace. Due to more demand versus supply, home prices have been increasing year after year. The Federal Housing Finance Agency (The FHFA) has increased conventional loan limits for the past 4 years. The 2022 Conforming Loan Limit cap is now at $647,200. HUD followed FHFA’s lead in raising conforming loan limits. HUD increased FHA loan limits for the past four years. 2022 FHA loan limit caps at $420,680. Experts expect a greater number of homebuyers and higher demand for homes than supply.
Mortgage and Real Estate Market Update: Fear Of Recession May Impact 2022 Real Estate Market
There was a lot of talk of a recession last year. However, with good economic news reporting quarter after quarter, the fear of a recession seemed to have faded away. Still, many economists and financial analysts have been predicting a recession. This holds especially true during 2022. The Trump Administration and the Federal Reserve Board are very proactive in preventing a potential recession. A recession is not the end of the world. A recession does not trigger a housing crisis. Recessions are part of the economic cycle and happen every five to 8 years. A housing market slowdown is one of the five possible factors that trigger a recession. The real estate market is stronger than ever. There are no signs of a housing slowdown in the near future. A little slowdown in home sales may happen in 2022. This is not because of a weak housing economy but more due to the 2020 elections. Some homebuyers may want to delay buying a home until after the 2020 elections. All signs indicate that 2022 will be one of the best years for homebuyers and the mortgage markets.
January 20, 2022 - 5 min read