Last year, mortgage interest rates reached record lows. The average VA FTHB’s interest rate was 2.90% and the quarterly FTHB VA purchase loan volume stayed elevated. In Q3 2021, it reached a record level of over $19 billion for that quarter, $174 million higher than Q3 2020. And since 2017, VA purchase loans helped roughly 200,000-230,000 VA-eligible first-time home buyers per yearbecome homeowners.
So, what will 2022 look like for the VA FTHB borrowers?Our scratch pad calculations tell us that if interest rates continue to climb, we might see a lower VA FTHB volume of around $58 billion in 2022. On the other hand, if rates stabilize and stay in low to mid 3’s, we might see the VA FTHB purchase volume at $70 billion in 2022.
Info via: www.housingwire.com
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