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2022 In Review

Dated: February 15 2023

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Today, we're going touch on a few of the major stories in our industry as a 2022 year in review.
Interest Rates
 
The dominant story in the mortgage world in 2022 was rising interest rates. Below is a chart produced by Freddie Mac of the average 30-year mortgage rate throughout the year:
We started in the low 3s and are ending the year in the mid 6s with them spiking into the 7s in October & November. The increase is largely a result of inflation and the Federal Reserve’s response to it. The Fed raised interest rates 6 times in 2022 in an effort to combat runaway inflation that effected every other consumer good this year and interest rates did not escape the scope of those actions.
 
The industry response to the rates
 
Mortgage applications took a sharp decline in 2022 largely in response to the rates. See the chart below:
In response, the industry, including Silverton, have come up with some unique solutions. Many of them involve a temporary relief of the interest rate (see newsletter on 2-1 buydowns), while others are offering discounted refinances in the next two years to purchase clients in 2022. 
 
Average market times
 
The average time that a listing was on the market has increased in 2022 from its record turnaround times in 2021. While the sales prices increased on average 23%, the interest rates kept prospective buyers at bay. According to market statistics from Rocket Homes, the average time a home was on the market in November 2021 was 70 days. That time increased to 88 days average in November of 2022   
 
Loan limits increase
 
Both the conventional and government loan limits increased to $726,200 & $472,030 respectively. 
 
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Molly McGrory

When it comes to real estate, Molly McGrory is the epitome of passion. With a career spanning over 28 years, Molly has grown RE/MAX Town & Country from a small office with just a handful of agents to ....

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2022 In Review

Today, we're going touch on a few of the major stories in our industry as a 2022 year in review.Interest Rates The dominant story in the mortgage world in 2022 was rising interest rates. 

Read More