Housing!

February 7, 2022

Over the years, Orion has helped our brokers assist thousands of borrowers in financing their homes. And good brokers continue to help existing clients, previous clients, and new clients with their financing decisions through good rates, innovative products, and superior service. We are very aware of the role housing plays in our economy, and are strong advocates of financing the American Dream.

 

We mention this because of the role that housing data has accounted for recently in economic data. And while we wait for January’s data, which is expected to be strong, it is a good idea to see what housing news has brought us.

 

The National Association of Home Builders/Wells Fargo Housing Market Index declined slightly to a still-high 83 as the short supply of building materials is pushing up costs. But builders are still building. It is estimated that thecost of building a new home has increased 19 percent since December 2020.

 

In the face of these challenges, housing starts increased 1.4 percent in December to a 1.7 million-unitpace. Existing home sales dipped 4.6 percent to a 6.2 million-unit pace as inventories fell to a record low of 910,000 homes. Over the previous twelve months, existing single-family home prices increased 16.2 percent.

 

The National Association of Realtors reported that existing-home sales declined in December, snapping a streak of three straight months of gains, with sales falling in each of the four regions of the U.S. Despite the drop in December, year-over-year sales for 2021 were up 8.5%.

 

Lastly, mortgage applications across the nation have spent the last few weeks increasing and decreasing, depending on the week, despite the average 30-year fixed rate having risen to 3.56 percent. Orion’s brokers have seen an increase as well as borrowers continue to want to own and finance homes rather than continue renting. We won’t say that rates don’t matter, but as we move through February the desire for ownership continues.

 

Rising rates and rising home prices will certainly test buyer demand, however, rising incomes and continued job growth may support home sales in 2022. Orion’s AEs continue to report brokers seeing people who want to buy a home, and finance, regardless of rates or general economic conditions. And we’re there for you to help them.


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