2022 Homeownership and Consumer Outlook

At UW Credit Union, we’re here to help everyone achieve their homeownership dreams. Here’s a synopsis of market conditions, along with tips to help buyers reach their goals with confidence.

Reaction to rising rates

Fannie Mae reports that most Americans feel now is a good time to sell a home. Here are highlights from the most-recent Home Purchase Sentiment Index:

17% of Americans say it’s a good time to buy
76% of Americans say it’s a good time to sell
70% of Americans think mortgage rates will increase in the next 12 months
81% of Americans are not concerned about losing their job
26% of Americans say their household income is significantly higher than 12 months ago
47% of Americans believe home prices will go up in the next 12 months

Implications of these changing conditions

Demand for homes remains high. Increased time spent at home during the pandemic has prompted many Americans to seek out new or bigger homes to accommodate changing needs. With more millennials reaching prime buying years and many Americans enjoying job security, there is more motivation to buy than in years past but fewer overall homes on the market.

Refinancing falls in popularity. With increased rates, mortgage refinancing is no longer an attractive option for most homeowners.

Leveraging home equity an increasingly popular option. Many homeowners are taking advantage of cash-out refinancing and home equity loans to do everything from paying off higher-interest debt to making larger home improvements.

Help with a successful home search

At UW Credit Union, we understand that buying a home can seem a complicated process – whether it’s your first or fifth such purchase. Here are some of the ways our mortgage loan officers help ease the experience:

“Buying a home, whether it’s your first time or fifth time, can be overwhelming. I take the time to explain the mortgage process in an easy and understandable way as to give each borrower confidence during a complex time.”
Anna Wise, Madison, 5+ years’ experience
“I like to present the borrower/buyer with all the financing options, give my own feedback, and help the make the best decision.”
Dustin Wohlfert, Madison, 10+ years’ experience
“With market conditions the past few years, especially this year, it’s vitally important that as a lender we’re able to act quickly for our members and realtor partners. The ability to review and issue strong preapproval letters quickly and outside normal business hours can really help buyers/realtors in this market. Focusing on that along with being a consultative partner to our members to help them figure out the best product options for their situation helps to set us apart.”
Cory Poole, Madison, 20+ years’ experience.As I assist homebuyers, we focus our conversation on comfortable mortgage payments with emphasis on goals, lifestyle and budget, instead of the term and rates. That way they know that we are setting them up for success no matter what the rate or the product they end up choosing.
Rina Courtier, Madison, 9 years’ experience
“Even seasoned homebuyers can use education and guidance they’re not expecting. When a member who owns a home comes in looking for a preapproval, we still have a lot to talk about. Since I’m not just a mortgage broker, I’m part of a whole team at UWCU, I can connect them with experts for bridge loans, debt consolidation or financial advising in order to make sure their offers have few strings attached and are as strong as possible.”
Ian Warlick-Short, Madison, 5 years’ experience
“Given today’s market conditions, I oftentimes recommend ARMs to my clients instead of a Fixed-Rate option. It gives them more opportunity and flexibility.”
Rick McKinley, Madison, 30+ years’ experience

Why choose UW Credit Union?

We are one of Wisconsin’s top mortgage lenders with decades of experience helping people become homeowners. We offer:

Local Mortgage Loan Officers in branches
Online applications and easy rate quotes
Quick call-backs (never more than a 24-hour wait)*
A wide variety of home loan products and competitive rates
Free first-time homebuyer seminars
Stackable offers to take advantage of multiple discounts, including up to $1,2501,2 off for first-time buyers and up to $7502,3 off for experienced buyers
Expanded lending territory (we’re now in Minnesota and Illinois, too)

Call 800-533-6773, ext. 2810, to reach the UW Credit Union Mortgage Loan Department.

*Any inquiries received outside of business hours will be returned the next business day.

1UW Credit Union closing cost credit is variable and may be up to $1,000. Credit will be calculated on actual cost, excluding owner’s title and transfer tax fees, and will be reflected on the Closing Disclosure (CD). Offer valid for purchase transactions only; refinances do not qualify. Offer valid for first-time buyers only. An individual is to be considered a first-time home buyer who (1) is purchasing a property; (2) will reside in the property as a principal residence; and (3) has had no ownership interest (sole or joint) in a residential property during the three-year period preceding the date of the purchase of the property. The discount will be applied at closing as a lender credit and reflected on the CD. This offer excludes VA, FHA, WHEDA, lot, construction, investment property and Rapid Refinance loans. Offer valid for first mortgages only. Offer is subject to credit approval and underwriting and is subject to change without notice. Mortgage insurance is required for transactions over 80% LTV. This offer requires an established UW Credit Union checking account. Offer may be combined with $250 closing cost credit for Premium Checking for a maximum credit of $1,250, but may not be combined with any other offers. No other discounts apply. Actual closing cost credit may be limited as the combined total of seller credits and lender credits cannot exceed the actual amount of closing costs, prepaid interest, and escrow reserves; please review the allowable credits for your specific transaction with your loan officer. Contact us for details.

2Membership requirements apply. Member must have a UW Credit Union Premium checking account opened at least 20 days prior to closing date to receive up to a $250 closing credit, which will appear as a credit on the final Closing Disclosure. Credit will be calculated on actual cost, excluding owner’s title and transfer tax fees, and will be reflected on the Closing Disclosure (CD). Offer subject to change and without notice. Offer may be combined with First-Time Homebuyer Discount for a maximum credit of $1,250, or it may be combined with $500 Closing Cost Credit for a maximum credit of $750, but may not be combined with any other offers. Offer is not available for the following loan types: lot, construction, WHEDA, FHA, VA, and Rapid Refinance. Contact us for details.

3Membership requirements apply. Offer valid on home purchase and refinance loan closings occurring between April 27, 2022, and December 31, 2022. Credit will be calculated on actual cost, excluding owner’s title and transfer tax fees, and will be reflected on the Closing Disclosure (CD). The credit will be applied at closing as a lender credit and reflected on the CD. Offer valid for both purchase and refinance transactions. Offer excludes VA, FHA, WHEDA, lot, construction, and Rapid Refinance loans. Offer is subject to credit approval and underwriting and is subject to change without notice. Mortgage insurance is required for transactions over 80% LTV. This offer requires an established UW Credit Union checking account. Offer may be combined with $250 Closing Cost Credit offer for Premium Checking accountholders for a maximum credit of $750, but may not be combined with any other offers. Actual closing cost credit may be limited as the combined total of seller credits and lender credits cannot exceed the actual amount of closing costs, prepaid interest, and escrow reserves; please review the allowable credits for your specific transaction with your loan officer. Contact us for details.