The MBA has estimated that mortgage purchase volume will grow by about 9%, to $1.73T. That is $1,730,000,000,000! While that is certainly a positive piece of information, it follows up with the statement that total business volume will fall significantly due to a more than 60% drop in refinance business, from 2.26 trillion dollars to just around $860B. While $860 billion is still a lot of refinances, it will leave a big void in total volume.
I’m never one to say that the MBA is always correct in its projections, but obviously higher interest rates and the sheer number of people that have already refinanced down into the 2% range will reduce volume. So, what if the MBA is correct and we see a nice increase in purchase business in 2022, but lose more than 60% of the refinances? My guess is, that it all depends on what your business looks like? Take a minute and ask yourself the following questions:
- 1. If I look at my 2021 loan volume and apply a 9% increase in purchase volume, and subtract 60% of my refinance volume; how does 2022 shape up for me?
- 2. As total loan volume drops and there becomes more competition for loans, how will I compete for new business and secure my current referral network opportunities?
- 3. If I don’t have a plan for 2022 on how to deal with a changing market and increased competition, where can I get help?
The help you need may just be one click away! I am Michael F White and I own IMT Coaching. For more than 20 years I have been helping loan originators, managers, mortgage companies, and mortgage divisions of banks & builders out perform the competition! For a no obligation consultation, just email me and let’s schedule a call. The changing landscape is not a threat; it’s an opportunity if you just have the plan in place to make it happen!
I look forward to hearing from you soon,
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You can visit my website: www.IMTcoaching.com
