inception-app-prod/ODc3Y2E5ZGItYThiNi00Y2UzLTg5MmYtNWQ2Yzk5MzcyYmUx/content/2021/05/BarrentineGroupLogo_2021-02.png
inception-app-prod/ODc3Y2E5ZGItYThiNi00Y2UzLTg5MmYtNWQ2Yzk5MzcyYmUx/content/2020/07/kwluxurylogo.png
  • Meet Our Team
  • Our Blog
  • Listings Search
    • Featured Listings
  • Seller and Buyer Resources
    • Seller Resources
    • Buyer Resources
  • Testimonials
  • Giving
  • Videos
  • Contact us
Barrentine Group
310.276.6656
info@barrentinegroup.com
Sign In
Sign Up
inception-app-prod/ODc3Y2E5ZGItYThiNi00Y2UzLTg5MmYtNWQ2Yzk5MzcyYmUx/content/2021/05/BarrentineGroupLogo_2021-02.png
inception-app-prod/ODc3Y2E5ZGItYThiNi00Y2UzLTg5MmYtNWQ2Yzk5MzcyYmUx/content/2020/07/kwluxurylogo.png
  • Meet Our Team
  • Our Blog
  • Listings Search
    • Featured Listings
  • Seller and Buyer Resources
    • Seller Resources
    • Buyer Resources
  • Testimonials
  • Giving
  • Videos
  • Contact us
inception-app-prod/ODc3Y2E5ZGItYThiNi00Y2UzLTg5MmYtNWQ2Yzk5MzcyYmUx/content/2021/05/BarrentineGroupLogo_2021-02.png
inception-app-prod/ODc3Y2E5ZGItYThiNi00Y2UzLTg5MmYtNWQ2Yzk5MzcyYmUx/content/2020/07/kwluxurylogo.png
inception-app-prod/ODc3Y2E5ZGItYThiNi00Y2UzLTg5MmYtNWQ2Yzk5MzcyYmUx/content/2021/11/0b47f43ebbb16ea3e9229a73a3550d08ded4638a.jpg
BuyersSellers

Don’t Believe Everything You Read: The Truth Many Headlines Overlook

inception-app-prod/ODc3Y2E5ZGItYThiNi00Y2UzLTg5MmYtNWQ2Yzk5MzcyYmUx/content/2021/05/RedGroupLogo_Circle-01.png
Barrentine Group,11/23/2021

There are a lot of questions right now regarding the real estate market as we head into 2022. The forbearance program is coming to an end and mortgage rates are beginning to rise.

With all of this uncertainty, anyone with a megaphone – from the mainstream media to a lone blogger – has realized that bad news sells. Unfortunately, we’ll continue to see a rash of troublesome headlines over the next few months. To make sure you aren’t paralyzed by a headline, turn to reliable resources for a look at what to expect from the housing market next year.

There are already alarmist headlines starting to appear. Here are two recent topics you may have seen in the news.

1. Foreclosures Are Spiking Today

There are a number of headlines circulating that call out the rising foreclosures in today’s real estate market. Those stories focus on an overly narrow view on that topic: the current volume of foreclosures compared to 2020. They emphasize that we’re seeing far more foreclosures this year compared to last.

That seems rather daunting. However, though it’s true foreclosures have been up over the 2020 numbers, it’s important to realize that there were virtually no foreclosures last year because of the forbearance plan. If we compare this September to September of 2019 (the last normal year), foreclosures were down 70% according to ATTOM.

Even Rick Sharga, an Executive Vice President of the firm that issued the report referenced in the above article, says:

“As expected, now that the moratorium has been over for three months, foreclosure activity continues to increase. But it’s increasing at a slower rate, and it appears that most of the activity is primarily on vacant and abandoned properties, or loans in foreclosure prior to the pandemic.”

Homeowners who have been impacted by the pandemic are not generally the ones being burdened right now. That’s because the forbearance program has worked. Ali Haralson, President of Auction.com, explains that the program has done a remarkable job:

“The tsunami of foreclosures many feared in the early days of the pandemic has not materialized thanks in large part to the swift and decisive foreclosure protections put in place by government policymakers and the mortgage servicing industry.”

And the government is still making sure homeowners have every opportunity to stay in their homes. Rohit Chopra, the Director of the Consumer Financial Protection Bureau (CFPB), issued this statement just last week:

“Failures by mortgage servicers and regulators worsened the impact of the economic crisis a decade ago. Regulators have learned their lesson, and we will be scrutinizing servicers to ensure they are doing all they can to help homeowners and follow the law.”

2. Rising Mortgage Rates Will Slow the Housing Market

Another topic that’s generating frequent headlines is the rise in mortgage rates. Some people are expressing concern that rising rates will negatively impact the housing market by causing home sales to dramatically decline. The resulting headlines are raising unneeded alarm bells. To counteract those headlines, we need to take a look at what history tells us. Looking at data over the last 20 years, there’s no evidence that an increase in rates dramatically forces sales to come to a halt. Nor does home price appreciation come to a screeching stop. Let’s look at home sales first:Don't Believe Everything You Read: The Truth Many Headlines Overlook | MyKCMThe last three times rates increased (shown in the graph above in red), sales (depicted in blue in the graph) remained rather consistent. It’s true that sales fell rather dramatically from 2007 through 2010, but mortgage rates were also falling at the time. The next two instances showed no meaningful drop in sales.

Now, let’s take a look at home price appreciation (see graph below):Don't Believe Everything You Read: The Truth Many Headlines Overlook | MyKCMAgain, we see that a rise in rates didn’t cause prices to depreciate. Outside of the years following the crash, prices continued to appreciate, just at a slower rate.

Bottom Line

There’s a lot of misinformation out there. If you want the best advice on what’s happening in the current housing market, let’s connect.

Print Details
Previous post
Next post
4 Ways Homeowners Can Use Their Equity
How Smart Buyers Are Approaching Rising Mortgage Rates

Office

Keller Williams Larchmont | Miracle Mile5150 Wilshire Blvd, Ground FloorLos Angeles, CA 90036
CalDRE License # 01207185
310.276.6656
info@barrentinegroup.com

Helpful resources

  • Home
  • Meet Our Team
  • Client Testimonials
  • Giving

Explore

  • Listings Search
  • Featured Listings
  • Buyer Resources
  • Seller Resources

Consumer Protection & Privacy

  • Accessibility
  • DMCA Compliance
For ADA assistance, please email compliance@placester.com. If you experience difficulty in accessing any part of this website, email us, and we will work with you to provide the information.
inception-app-prod/ODc3Y2E5ZGItYThiNi00Y2UzLTg5MmYtNWQ2Yzk5MzcyYmUx/content/2021/05/RedGroupLogo_2021-02%281%29.png
inception-app-prod/ODc3Y2E5ZGItYThiNi00Y2UzLTg5MmYtNWQ2Yzk5MzcyYmUx/content/2020/07/logo-2.png

© 2022 All rights reserved

Created with Placester

Sign in

Sign in with your email address

Sign In
Forgot your password?
Create an account
You have been successfully logged in
The page will reload automatically.
Go to the homepage
Sorry something went wrong
Login or password are incorrect. Please try again.
Try again

Sign Up

Sign Up
Already a User? Sign In
You have been successfully registered
Please check your email.
Go to the homepage
Sorry something went wrong
Please try again.
Try again

Reset password

Enter your email address

Reset password
Return to Log In
Reset password email has been sent.
Go to the homepage
Sorry something went wrong
Please try again.
Try again

Change password

Change password
Your password has been successfully reseted.
Go to the homepage
Sorry something went wrong
Please try again.
Try again
Send
Succes! Your message was sent!
Thank you for visiting RED Real Estate Group. "Helping you make wise real estate decisions"
Back to homepage
Oops! Error occurred.
Please try again.
Back to form
Already a User? Sign In

Account verification in progress

Please wait...

Account Verified!

You may now log in into your account
Go to the homepage

Verify your email address

In order to log in to your account, you need to confirm your email address. Please check your inbox!
Go to the homepage

Share this listing

Copy Link