MBA CEO Expects 4% Mortgage Rate by End of 2022

The video discusses the expected rise in interest rates to 4% by the end of 2022, driven by factors like inflation and Fed policies. It highlights the rush for mortgage preapproval due to anticipated rate hikes and the impact on housing demand. The urban to suburban migration trend is examined, noting its persistence without a significant urban exodus. Credit quality remains strong due to post-crisis reforms, and the risk of stagflation is considered low, with economic growth expected to stabilize by 2023.

What is one of the main reasons for the expected rise in interest rates by the end of 2022?

• Reduction in housing demand

• Persistent inflation

• Decrease in inflation

• Increase in mortgage-backed securities purchases

Why are people rushing to get mortgage preapprovals?

• To refinance existing loans

• To secure a fixed-rate mortgage

• To avoid higher future rates

• To take advantage of falling home prices

What is a significant constraint in the current housing market?

• Excessive new inventory

• Low demand for homes

• Insufficient new inventory

• Decreasing home prices

How have credit standards changed since the financial crisis?

• They have become more lenient

• They are no longer regulated

• They have remained the same

• They have become stricter

What is the expected trend for home price appreciation in the coming year?

• Remain at current levels

• Increase to 20%

• Drop to 0%

• Decrease to 5%