Here's this week's roundup of news and resources, just for you.
Quick takeaways:
One trillion-dollar loss in loan originations expected.
Facebook is the preferred social media platform for real estate agents.
First-time buyer benefits aren't just available to people buying their first home.
Experts predict big economic growth, but also slowing home price growth.
Homes in less expensive neighborhoods are seeing strong interest.
Read on for our coverage.
One Trillion Dollar Loss in Loan Originations Expected
The Mortgage Banker Association's (MBA) Mortgage Finance Forecast expects a loss of one trillion dollars in originations from 2021 to 2022. Predicting that lenders will find it challenging to maintain the volume of 2021 in 2022 and will likely spend more money trying to come close. This is partly, a result of the 11% increase in Mortgage Loan Originator (MLO) employment. Despite this predicted loss, purchase originations are forecasted to increase in 2021, 2022, and 2023. 1
Agents Prefer Facebook
97% of real estate agents use Facebook as their primary social media platform, according to a recent survey by the National Association of Realtors. They appreciate the outreach features it offers to their business, and the strong presence on the platform of Millennials, who have reached prime home-buying age. 2
Defining "First-Time Buyer"
First-time homebuyers are eligible for many financial incentives and assistance programs. However, these perks also apply to previous buyers who haven't owned a home in the past three years.3
Strong Growth Could Cool Market
National Association of Realtors Chief Economist Lawrence Yun expects the economy to grow 4.5% in 2021, thanks to increased consumer spending as the pandemic lifts. At the same time, higher mortgage rates, more owners willing to put their homes on the market, and an increase in new home construction could help to increase tight inventory, easing the super-competitive housing market. 4
High Demand for Less Expensive Homes
Buyers are seeking out homes in some of the least expensive neighborhoods in the country. Areas with a median home price below $100,000 have seen a 42 percent jump in home value over the last three years. The only drawback is that this shift may keep some lower-income people out of the market. 5
Have any questions? Reach out to us. We are your home loan experts and are up to date with all the market industry information. kevnik@kevnikmortgage.com
Sources: 1 nationalmortgageprofessional.com; 2 mpamag.com; 3 themortgagereports.realtor; 4 nar.realtor; 5 magazine.realtor
