Mortgage & Market Update: October 2022
I recently sat down with Jolene Messmer, Sales Manager with Caliber Home Loans (NMLS 379952) to talk about the latest updates in mortgage rates and the overall market.
Mortgage Rate Predictions from August 2022.
Buy Now, Sell Later
7 Ways to Bridge the Gap
Home Equity Loan to secure your down payment for a new purchase.
SmartEdge Jumbo or Conforming Loan will allow up to a 50% debt to income ratio to help qualify for both mortgage payments.
Asset Depletion program that uses retirement accounts to create income to help qualify for both payments.
Departing Residence use 75% of the appraiser’s opinion of rental income on the current home to offset monthly payment.
Rent Current Home and use 75% of the rental income to offset monthly payment.
Bridge Loan use equity in the current home as a down payment.
Cross Collateral equity in the current home as a down payment.
OR…
A Bank Statement 1099 Loan Program
SmartSelf from Caliber Home Loans is a smart option for Self Employed who wish to use Bank Statements or 1099s to qualify. SmartSelf allows self-employed individuals to use 12 or 24 months personal or business bank statements or 1099s to support their income in qualifying for a mortgage. No Tax Returns required.
Self-employed income with 12-24 months of bank statements.
Income is calculated by averaging deposits shown on bank statements.
Up to $3M loan amounts.
Cash out limit up to $1M.
Can have one late mortgage payment over the last 12 months.
Fixed and Interest Only rate options available.
Industry Outlook for 2023
This will be the year of consolidation and restructuring in the mortgage industry.
Q1 is going to be tough for the same reasons shared in the 2022 outlook and about 30% of historical normal volume.
The global economic impacts and overall environment is going to have to begin to settle (such as with the Ukraine situation getting resolved).
Rates look like they could remain higher for 6+ months depending on who you listen to.
Fannie Mae and Freddie Mac Rate Projections do indicate a lower rate environment in 2023.
Many indicators predict the housing market to flatline but continue its growth vs. decline.
Due to consumer debt and potential of low rate environment you need to be ready for a refinance market at some point in 2023.