Home Purchase - Home Refinance
For Properties in MN WI IA ND SD
The headlines have been heavy with talk of inflation, high interest rates and even the possibility of a recession lately. Many may be wondering what this means in general, but especially what this means for the housing market. It’s easy to get wrapped up in the panic of it all, so we’re laying out the facts. Here’s what you need to know about what’s really behind all these headlines…
In the past four decades, we’ve seen six recessions in this country. During those six recessions, home prices actually appreciated more often than not. In fact, home prices increased four out of six times. Not only are we not in a recession today, but even if we were to enter into one, time and time again history shows that a recession does not equal a housing crisis.
High inflation and high interest rates do not mean low home prices
An increase in inflation and an increase in mortgage interest rates are not directly correlated with home prices. Just because inflation and interest rates are on the rise, does not necessarily mean that home prices will fall or that we will see a market crash. Simply put, it just means that the rate at which home prices are increasing may slow. Home prices are still expected to rise in the near future, just at a more normal rate.
We can’t emphasize this point enough… What we are dealing with today is nowhere close to what happened in 2008. In the past, it was much easier to obtain a mortgage. Today, there are strict guidelines and verifications in place that prevent those who aren’t truly ready for homeownership from becoming homeowners. In addition, if home prices did unexpectedly drop, today’s homeowners are sitting on record amounts of equity and would theoretically have the ability to sell their home and pay off the mortgage versus falling into foreclosure. All in all, we have many rules and regulations in place to prevent a scenario like 2008 ever happening again.
In summary, the attention-grabbing headlines we are seeing today are just that… Attention grabbers. If you have questions about where the housing market is heading or how you can best approach purchasing a home in today’s climate we are here for you now and always. Call us today at 651-552-3681 or simply apply online right on this website to get started!
SOURCES:
Bove, T. (2022, April 22). A major mortgage company is prediction a recession, but the red-hot housing market could bring relief. Fortune. Retrieved June 1, 2022, from https://fortune.com/2022/04/22/fannie-mae-moderate-recession-hot-housing-market/
Crew, K. C. M. (2022, May 18). The one thing every homeowner needs to know about a recession. Keeping Current Matters. Retrieved June 1, 2022, from https://www.keepingcurrentmatters.com/2022/05/19/the-one-thing-every-homeowner-needs-to-know-about-a-recession/
ESR Group. (n.d.). Inflation rate signals tighter monetary policy and threatens ‘Soft landing’. Inflation Rate Signals Tighter Monetary Policy and Threatens ‘Soft Landing’ | Fannie Mae. Retrieved June 1, 2022, from https://www.fanniemae.com/research-and-insights/forecast/inflation-rate-signals-tighter-monetary-policy-and-threatens-soft-landing
How will inflation affect the housing market in 2022? (podcast). Mortgage Rates, Mortgage News and Strategy : The Mortgage Reports. (2022, May 2). Retrieved June 1, 2022, from https://themortgagereports.com/91212/inflation-housing-market-2022-podcast
Top rated nationally and locally year after year. Because clients agree - expert Loan Officers, interest rates you can brag about and amazing service sets us apart from the big banks and internet lenders.
33 Wentworth Ave E, St Paul, MN 55118
(651) 552-3681
Loans@VAMortgageMN.com
Cambria Mortgage, Inc | NMLS #322798
Branch Manager: Joe Metzler, NMLS #274132
Branch NMLS #1888858
We are not acting on behalf of, or under the direction of the VA or the Federal Government. The Veterans Administration does not lend directly to the public, only through approved lending institutions like us here at Cambria Mortgage.
The Department of Veteran Affairs requires mortgage companies who offer VA Loans go through a stringent approval process. We are proud tp a VA approved mortgage lender and are proud to help military families use their VA Loan Benefits.
Equal Housing Lender, Cambria Mortgage NMLS# 322798. Our lending services provided only in the following states: Minnesota, Wisconsin, Iowa, North Dakota, and South Dakota. This is not an offer to lend or to extend credit, nor is this a guaranty of loan approval or commitment to lend. The information here may not be up-to-date and may no longer be accurate. Products and interest rates are subject to change at any time due to changing market conditions. Actual rates available to you may vary based upon a number of factors. Consumers must independently verify the accuracy and currency of available mortgage programs. All loan approvals are subject to the borrower(s) satisfying all underwriting guidelines and loan approval conditions and providing an acceptable property, appraisal and title report. © 1998 - 2023, Joe Metzler, NMLS 274132
Rates listed here are national averages. Your actual interest rate may vary based on your personal situation, loan type, credit scores, and closing cost choices. Lower rates available by paying discount points (higher closing costs). Lower closing costs available by taking a higher interest rate. Rates below reflect PURCHASE loan interest rates, refinance rates tend to run higher.
NOTICE: You will be leaving this VA Mortgage website, and will be taken to the Cambria Mortgage MY ACCOUNT page. You must already have a login and password to view your account, upload documents, etc.