Adri and Fritz are back with another show - continuing with the alphabetic review of industry terms you should know, as well as discussing the immediate impact of the recent increase to the Fed Fund Rate -

Rates Increasing faster than anticipated
https://www.cnbc.com/2022/03/22/mortgage-rates-are-surging-faster-than-expected-prompting-economists-to-lower-their-home-sales-forecasts.html

The recent rate hikes and anticipated rate increases are expected to lower demand for sales – it is also predicted this will cause a drop in prices – however an increase to the cost of capital simply reduces the buying power of the average homeowner and does nothing to lower prices (they may stabilize as the market cools but they will not decrease – typical collateral appreciation is between 3-4% per year on average – however the previous year saw an average increase of 14.5%)

When rates go up – demand goes down – purchase demand has dropped 2% and refinance demand is already down 14% - total demand (mortgage applications) dropped over 8% last week - however - despite all of these changes demand remains strong as both rates and the supply of available properties remains quite low.

Real |Estate Terms You Should Know
https://www.opendoor.com/w/blog/real-estate-terms-you-should-know

The Glossary of industry terms (from the Fannie Mae Selling Guide)
https://selling-guide.fanniemae.com/Selling-Guide/Quick-Reference-Materials/

Also be sure to check out our other podcast - The Frank The Unicorn Radio Program (for something a little more on the fun side of things)

http://franktheunicorn.com