worrisome thing. Confusing. Leather saw.
The World Health Organization has listed five worrisome COVID-19 variants since December 2020. Among them, Delta and Omicron have grabbed the headlines. That’s an average of five new variables each year.
Globally, lockdowns and lockdowns continue to varying degrees. Just when we think the coast is empty, then do we go back to lockdowns, hospitalizations rising as supply chain rifts mingle.
We have lost more than 800,000 Americans. The planet has lost more than 5.4 million. Our inability to contain the coronavirus, with all its discomfort and uncertainty, will likely translate into stable mortgage rates and higher home prices.
Those are just two of my predictions for 2022. Here’s the rest:
- Even with inflation pressures, Freddie Mac’s 30-year mortgage rate will remain relatively low, averaging 3.375%. The 2021 average was 2.95%.
- The average 15-year mortgage rate for Freddie Mac will be 2.625%. The 15-year average was 2.27 in 2021.
- The median home price in Los Angeles, Orange, San Bernardino and Riverside counties will increase by 8%.
- Home sales in the area will be flat compared to 2021. Year-to-date sales are up 18% through Dec. 15, according to Stephen Thomas of Housing Reports. Flat still means volume.
- California home sales volume will increase by 5%. During the first three quarters of 2021, home sales rose more than 11%, according to Atom Data Solutions.
- The prime rate will increase to 4% from its current rate of 3.25%. These are three separate quarter-point increments.
- Nationally, total mortgage financing (purchase, refinance and cash refinancing) will fall 25% compared to 2021. That’s $3 trillion next year compared to an estimated $4 trillion in 2021. Anyone with less mortgages 3% won’t go back to the well again in 2022. But more people will cash in on their massive equity through cash refinancing.
- The Federal Housing Administration will lower the FHA mortgage insurance premium it charges consumers for most mortgages. The MIP offered will decrease to 1.25% of the loan amount from 1.75%. The monthly mortgage insurance premium will drop to 0.55% from 0.85%.
- The federal government will not have any new mortgage payment deduction programs due to COVID-19. There will be no new programs to stop evictions in California. Some mortgages and renters have received the help they need. But many others benefited.
Let’s hope this year’s forecast is better than last year’s. Here are my results for 2020:
- The 15-year fixed rate will fall below 1%. wrong. Freddie’s 15-year flat rate was down 2.1% on July 29. The 15-year average was 2.27%. Not even close to 1%.
- Domestically, the 30-year flat rate will drop below 1.5% in points. wrong. It never went that far.
- The 30-year jumbo flat rate will drop to less than 2% in pips. wrong. And it amounted to about 2.65% in points.
- Freddie Mac’s average 30-year rate will be 2.65%. wrong. It averaged 2.95%.
- Freddie Mac average prices will start rising in the last quarter of 2021. That’s right.
- Wall Street Prime will remain at 3.25%. shout out.
- The moratorium on evictions and foreclosures will be lifted in California on October 1. True, though, tenants can’t be evicted until March 31 if they’ve completed an application for emergency rental assistance.
- Median home prices in Southern California will increase by 10%. wrong. It is up more than 15%.
- Home sales in Southern California will be flat. wrong.
- A first-time buyer tax credit of $10,000 will be transferred into law. wrong.
Freddy Mac rate news: The 30-year flat rate averaged 3.05%, down 7 basis points from last week. The 15-year fixed rate averaged 2.3%, down 4 basis points from last week.
The Mortgage Bankers Association reported that the volume of mortgage applications was down from the previous week, but the decline was less than 0.1%.
minimum: Assuming a borrower obtains a 30-year average fixed rate of matching loan of $647,200, last year’s payment was $135 less than this week’s payment of $2,746.
What I see: Domestically, well-qualified borrowers can get the following point-free fixed-rate mortgages: 30-year FHA at 2.375%, 15-year conventional at 2.45%, 30-year conventional at 3.125%, and a traditional 15-year high Equilibrium ($647,201 to $970,800) at 2.625%, 30-year conventional high balance at 3.19% and 30-year jumbo constant at 3%.
week loan: 30-year jumbo buy fixed at 2.5% with 1.5 pips.
Jeff Lazerson, a mortgage broker. He can be contacted at 949-334-2424 or firstname.lastname@example.org. His website is www.mortgagegrader.com.