How will the spring market flesh out for you? Will it be a Boom or a Bust? Let's look at the stats. The new regulations come in during April (9th for the CMHC changes and 19th for Federal regulations) and this will affect a small amount volume overall. Rates have moved up, with the promise of them moving higher (don't be fooled when the rates move down by 10-20 bps, that is just the natural "settling" of the rates) and this will move clients out of the market. The new qualifying rate won't affect the market over and above the rate increase as those who can't qualify when rates go up still can't qualify.
So where does this leave our question...Boom or Bust. That is going to fall on potential buyer's preception of the market and the economy. If they feel that they have to buy now, no matter what, that is when they will buy. This is the time where you, as mortgage professionals, can help to guide that preception. A smile and an "everything's great" attitude will carry over to the client. Being Debbie Downer will rub off on the client in a negative way and they will walk. Staying positive now will pay dividends down the road.
So, what's the lesson...don't get caught in the "negative trap". Your words and actions will drive a Booming Spring Market!
