With 2021 in the rearview mirror, there are some notable insights to glean from the past 12 months when it comes to the mortgage industry. The lingering pandemic was still a factor and looks as if it will stick around in the first part of 2022 as well. Here are some themes and highlights that helped define mortgage lending this past year.
Records Were Broken
Records were shattered from the number of homes sold, purchase price increases, inventory depletions, and costs of construction materials. While soaring property values was a plus for sellers, buyers had a difficult time finding something they loved and could also afford.
Interest Rates Remained Low
Good news for homebuyers amid the rising house prices were the low interest rates. Additionally, stable low rates helped fuel the number of refinances, which accounted for nearly 60% of 2021 originations.
Lenders Never Slowed Down
By all accounts, mortgage originations in 2021 were supposed to slow down compared to 2020 – at least that’s what the industry forecasts predicted. But it didn’t happen. Homebuyers were eager, and the bidding wars proved it.
Technology Bridged the Gap
With continued fears of in-person meetings, lenders as well as homebuyers stayed home – relying heavily on technology to facilitate the all-important personalized interactions. The availability of new software and technical solutions made this possible.
Covid Led to State-by-State Migrations
Just as it did in 2020, the pandemic still played a part in decision-making across the industry. Do you close offices? Do you keep them open? Do you require staff to return to work? Can they stay at home permanently? With some decisions still up in the air, many workers took the opportunity to move to more desirable locations if it meant working remotely.
We’re eager to see what new trends and insights unfold in 2022. No matter what they may be, Luxury Mortgage is here for your mortgage lending needs. Connect with one of our licensed mortgage consultants today to get started!
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