Our Healthy Housing Market

April 24th, 2022

I know that these feel like scary times. I want to share with you some good news! Data that points to the fact that we are in a pretty healthy housing market right now!

Inventory continues to be a challenge. The Millennial demographic is driving a shortage in supply that is not able to be filled with existing homes and home builders cannot build enough homes fast enough for supply to catch up with demand.

People getting a home loan today are verifying their income, their assets and have great credit.?76.73% of all credit scores for loans made in December 2021 were 700 or better.

This was NOT the case leading up to the 2008 recession and subsequent housing crash.

Homeownership is a hedge against inflation. It is no secret that the government has printed a lot of money over the past couple of years. We are now seeing the effects of this at the grocery store, the gas pump and almost everywhere else – housing is no different.

Purchasing a home at today’s prices is a great decision. With low supply and high demand, prices have nowhere to go but up! Even though mortgage rates are up this year, they are still low if you look at longer term historical averages. Almost all mortgages written today do not have a prepayment penalty so its very wise to purchase now locking in today’s price and leaving yourself the option to refinance down the road if mortgage rates fall. The price you pay lasts forever, you can change your mortgage rate later if it makes sense. Even if mortgage rates fall in a year or two home prices are likely to be meaningfully up from today’s levels which could leave you making a higher down payment and monthly payment even with lower mortgage rates.

I love to see data! So in that spirit I wanted to provide some helpful data presented in visual format to illustrate the claims I made in this article. If you have any questions on specific situations my team and I are here to help! Please reach out to us any time!

NMLS 332041 ● 407-310-9844 Direct ● www.joshvelazquez.com ● [email protected]?

*The information contained in the article is distributed for educational purposes only. The information is not guaranteed to be accurate and may not entirely represent the opinions of Fairway Independent Mortgage Corporation.** This document should not be construed as investment or mortgage advice or a commitment to lend. Your results may vary. There are no guarantees, promises, representations and/or assurances concerning the level of accuracy you may experience. For actual and current terms and rate information, please contact your lender directly. Monthly expenses may or may not include condominium or HOA fees, if applicable; your payment may be greater. *Lender is not a tax consultation firm. Please seek advice from a tax professional. Sources: MBS Highway, Freddie Mac.?***Fairway is not affiliated with any government agencies. These materials are not from HUD or FHA and were not approved by HUD or a government agency.?Copyright?2019 Fairway Independent Mortgage Corporation. NMLS#2289. 4750 S. Biltmore Lane, Madison, WI 53718, 1-866-912-4800. All rights reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Equal Housing Lender.