Why Does Mortgage News Conflict?
Ever find yourself browsing the news and come across conflicting articles, especially as it pertains to the mortgage and housing markets? You’re not alone. In one day, many people can find two articles, side by side, that have directly conflicting information. Why is this and what are you supposed to believe?
The simple reason is the mortgage industry has to predict what they expect will happen. How often have you accurately guessed what is to come, even if you researched and analyzed data to guide you in your prediction? There is no surefire way to anticipate what is to come in the future. Rates will fluctuate, the market will go from hot to cold, and outside factors such as employment trends and inflation will continue to play an important role. Sure, if unemployment is down, the economy is up. But who can say they can accurately predict when unemployment will unexpectedly rise again?
Experts are constantly monitoring and analyzing stats within our nation. We can look ahead, put the current pieces together, and lay out a plan of where we are headed based on how things have worked in the past. While this may seem like a risky way of planning and building an economy, it is how business is done in every company in every industry. You create a business plan on what you predict will happen or what you will be able to accomplish. You anticipate any obstacles you could encounter and develop a solution to get through them quickly and efficiently. The mortgage and housing industry are the same.
Another key factor to remember is people have different opinions on how new programs, laws, or regulations will affect consumers, buying power, and the economy as a whole. So while you read an article praising the latest and greatest loan program that will open up homeownership to thousands more buyers, you will likely hit the end only to stumble upon a headline declaring that same loan product a failure and the ultimate decline of our nation. Thank you freedom of speech.
So how do you smartly navigate these conflicting articles and get the information you need? Talk to your knowledgeable and experienced Loan Officer or Real Estate agent. These professionals are trained to zone in on the facts of such announcements. They will be able to look at your unique situation and tell you how something pertains to you, or not! The situation of each borrower is different and therefore may have different opportunities available to them. In general, if you are not sure what to make of recent news, just ask. You may be surprised at what you learn!