The shift in “the market” is upon us!  The increase in rates that the industry has seen over the past few weeks has made a lot of noise.  Housing strategies are shifting and rates are creeping up.  We will see a swing in what was once a very heavy refinance industry, to an increased purchase business.  Experts are predicting a climb of 67% of all originations to be purchase business.

For 2022 – the Federal Reserve has already announced and has started to increase rates, stating that we could see up to six increases over the course of the year.  We are expecting to see rates enter into the 4’s.  Still very low, but a very large defeat for the buyer that may have started out in the high 2 to low 3’s.   There is talk around inflation and how the Federal Reserve continues to combat this – could we potentially see rates start to get pushed down later in the year?

The market continues to be an anomaly, but the Fed will not kill the mortgage and housing market.  It may be a bit cranky for a bit, but truly these weeks are proving to confirm what we already knew – rates will go up.  Now … Could we possibly see more strength on the side of the buyer??  Time will tell on that one. 

Kristen Lourinia

Fitzgerald Financial Group

443-656-3384