MReport August 2022

TheMReport — News and strategies for the evolving mortgage marketplace.

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42 | M R EP O RT O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST ORIGINATION ORIGINATION Inflationary Concerns Spur Homebuyer Hesitation A recent Quicken survey found that 21% of those polled planned to buy a first or new house in 2022, with 69% of that segment now reconsidering that move. Q uicken Inc. recently conducted a poll indicating that the combination of inflation, rising interest rates, and market volatility is having a deep impact on the plans of the na- tion's consumers and their long-term purchases. Slightly more than 20% of those polled by Quicken had planned to buy a first or new house, and 69% of those are now re- considering purchasing a home. Automobiles are another major life purchase, and Quicken found that of the 30% polled who planned to buy a car in 2022, 60% of those are now reconsidering. "In these uncertain financial times, having a clear picture of your finances is more important than ever," Quicken CEO Eric Dunn said. "This knowledge can help you understand your op- tions for adjusting your spending so that you can stay on track to meet your long-term financial goals." People who were planning to rent a new apartment or buy a new home cite that the following are impacting their desire/ability to move: • Changes in the rental market (such as rents going up) (37%) • Rising interest rates (33%) • Gas prices (32%) • Stock market crash (19%) Of those planning to move in the next 24 months, 37% plan to move to a less expensive location. Quicken reports that beyond impacting major purchases, cur- rent market conditions are also forcing Americans to alter their day-to-day spending, with lower-income Americans feeling the pinch most acutely. The pain in the bank account was reported as widespread, with two-thirds of those polled (66%) having to cut back on driving, and 63% citing having to cut back on eating out. Fifty-two percent said they cut back on the foods they regularly buy. Meanwhile, just 9% of respondents in the Quicken poll said inflation was not impacting their financial situation. At least 27% of consumers say they had already cut back on necessities, such as housing and food in the past two years, trying to build their savings. For some respondents, 47% reported that savings helped build up an emergency fund, while others were more hopeful for a return on their investment, with 22% looking to invest in the stock market.

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