Mortgage Market Update - "Sales Sweats" - Powering Through

Happy New Year!?This week's headlines may seem scary.?But, I see signs of hope, personally…and that is not just me following my 3 year-old's lead to power through with stubborn defiance.?I explain what I mean by sharing this week's headlines and personal stories in the Mortgage Market Update.

• The #Federal Funds #rate is at 4.25%-4.5% which is its highest level in more than a decade.?FOMC members foresee any rate cuts in 2023.
• #TheFed notes "significant progress" against inflation, but many markets seem to think the Fed may stick with another .5% increase in February.?
• New conforming loan limits for #FannieMae and #FreddieMac for 2023 –?$726,200 and up to $1,089,300 in high-cost areas. That's a big increase from $647,200 in 2022!?But, raising loan limits may limit access to (often better priced) many Jumbo loan products.
• Fannie and?Freddie are modifying loan level price adjustments (LLPAs), for qualified #firsttimehomebuyer borrowers, within area median income (AMI) limits.?(Transalation:?Next week, qualified buyer, should see #rates and/or the costs to buy down rates improve on conventional/conforming #loans.)
• Applications for a #mortgage hit a 25-year low?this week, according to Freddie Mac, as the 30-year fixed-rate mortgage average moved up slightly to start the year.
• NAR showed?pending #homesales were down 38% year-over-year?in November and 4.0% month-over-month—second-lowest monthly reading in 20 years.

The other night Evan went full Fuller and had an accident.??He is 3 and new to sleeping through the night, it happens…no big deal.??I asked him about it and he insisted that he was just really sweaty when he sleeps.?He has been very committed to this story all week. Last night he said, "I should wear coldah pjs because if I wear wahmah pjs I will sweat the bed again."

I know many #buyers have been hiding under the sheets waiting for rates to drop, inventory to grow, and/or prices to fall.??You can pull an Evan and stay committed to the idea…or we can just call it what it is.?The key to navigating volitile markets is to?have a direct conversation with your #lender and #realtor.?Be honest with yourself about your goals and timelines.?Together,?(if you are ready to buy) we can help you overcome your fears to find a #homebuying plan that fits your short-term and long-term #financialplan.

To all my realtor friends,?who knows what the next night will bring.?I will not predict spring or summer or 2023 markets.?But, as a personal ray of hope, I would remind you that the housing stats above are: 1) skewed by YTD numbers based on an abnormal 2022 buying season 2) stats tend to have a lag time.??Personally, I am not planning to sweat the bed over a challenging market—since the holidays, my phone has been much more active!?In my conversations, shoppers seem eager to get pre-approved in anticipation of an early spring market.?

On behalf of my team, my family, and my sanity...Thank you to everyone who helped make 2022 one of the best years of my career!?It was a challenging market, which is why I am humbled by our continued growth.?This week, we start the new year with our first closings at Movement Mortgage (from app to keys)!?I am very excited for all the new opportunities we will uncover this year.?I look forward to earning your business again this year as we continue growing together in 2023!

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FL-LO109618, MA-MLO1401985, ME, NH, RI | Movement Mortgage LLC. All rights reserved. NMLS ID #39179 (For licensing information, go to:?www.nmlsconsumeraccess.org). Additional information available at movement.com/legal. Interest rates and products are subject to change without notice and may or may not be available at the time of loan commitment or lock-in. Borrowers must qualify at closing for all benefits.