Although we’re only days away from the end of the year, there’s still an opportunity to finish 2021 strong and carry that momentum into 2022. Now’s the time to
According to the latest intelligence from the Mortgage Bankers Association, 2022 is expected to be another record year for purchase originations, thanks to strong demand from Millennials and those wanting more space.
With mortgage rates expected to rise, MBA forecasters predict a 62% decline in refinance volume, following a 14% decline in 2021.
Home-price appreciation is expected to decline from 2021’s red-hot increase in value, primarily because interest rates on 30-year fixed mortgages are expected to hit 4% or more in 2022, according to some industry forecasts.
Tight Credit Availability
While the housing market has recently shown signs of cooling off with the return of seasonality and a reduction in bidding wars, home prices are still expected to be up nearly 20% over pre-pandemic averages. Affordability will remain a challenge, particularly for first-time homebuyers. Joel Kan, who heads MBA’s forecasting team, said “credit availability is still around 30% lower than pre-pandemic levels. Mortgage supply will need to increase modestly so that qualified buyers can get access to financing for their home purchase.”
With a mortgage market that’s expected to shift toward more purchase activity, competition for mortgages will heat up — making it more challenging for loan originators to match the record mortgage volume of recent years.
Help for LOs
Helping originators stand out from the competition in a challenging market is the reason Arch MI created our LO Toolbox and LO Toolbox for Credit Unions. It enables originators to work smarter by putting all of Arch MI’s time-saving MI solutions, shortcuts and support in one location. Accessible anytime from almost anywhere, this complete resource for loan originators includes:
- Our Roadmap to Homeownership — a complete homebuyer seminar solution you can co-brand with your own logo to present in person or remotely via Zoom.
- AMGC Community Heroes and AMGC Community Experts (both available through Arch Mortgage Guaranty Company) offer flexible coverage for eligible buyers with modest down payments.
- RateStar Buydown — Similar to a rate buydown, RateStar Buydown is the only tool in the industry that allows you to customize your borrower’s MI premium.
- As rents continue to increase, help prospective homebuyers understand the real advantages of Owning vs. Renting.
- Educate homebuyers about the tax deductibility of MI and how they can qualify.
- Inform Realtors® about our Medical and Dental Professionals
- Stay up-to-date with our Professional Webinars.