Mortgage Market Update - "Good Timing" - Back in My Day (recap Aug 21-27, 2023)

"Back in my day…"? In a fast moving real estate world, back in my day may as well be a few months ago.? This market remains dynamic and unprecedented. While experience is always important, lamenting how things use to be done is not productive to moving forward.? In this week's newsletter, I laugh at my most recent embarrassing "back in my day" moment.? I also discuss the headlines and stats making this lending and real estate market so unique.? Plus, a few tips on how to navigate the market with confidence.

• Mortgage application volume falls to lowest level in 6 years, as rate set a new 22-year high.? The downturn in #mortgageapplication volume extended to a sixth straight week falling .8% below the seasonally adjusted basis.?
• A measure of the availability of #mortgage credit dropped to its lowest level in a decade last month as lenders continued to tighten underwriting exceptions and reduce operating costs.

• ?In the second quarter the national median home prices dropped, but?nearly 60% of metro markets posted annual home price gains, which remain driven my limited inventory, according to the National Association of Realtors (NAR).
• #Commercial and #multifamily originations down 53% year over year in the second quarter.??
• #Studentloans currently in deferment will resume collecting interest in September and?payments will restart in October.??Please mark your calendars and monitor your payment schedules/amounts as missed payments will impact credit and can impact your ability to qualify?for a mortgage.? Be prepaired to have the upcoming payment schedules available when applying for a home.

Drew (my oldest) said he wanted something to listen to music, for his birthday.? We don't really want to get him an Alexa for his room (too much internet freedom for a 10 year old).? I said maybe we get him an iPod.? I looked them up and apparently they stopped making version that I had in mind about 20 years ago.? Thinking "What kids listen to music on these days"…I started snorting outloud with laughter, because Googling "how do kids listen to music" has never made me feel older!!

This market is different.? I've heard people try to compare it to 2008 or 1994, but neither are true comps.? This market has the unique combination of #mortagerates in the mid-7s (which is almost exactly at the average rate over the past 50 years) and historically low #housing inventory.? As a buyer your friend's #homebuying experience last year is not comparable, but nor is the experience of someone who last purchased 10-50 years ago.?

The key to navigating this market is building a #realestate team, with experience in this market—people with volume this year.? You want to work with a realtor who will look out for your best interest, who will take the time to get to understand your search and your goals.? Before each offer, your realtor will run a competitive #marketanalysis (CMA) to ensure your offer is well-informed based on the recent #home #sales in the area.? Similarly, your lender should be someone with options.? In a market where banks are skittish (underwriting is increasingly conservative, banks are struggling with deposits, portfolio/warehouse lines are more limited) and #rates are volatile in irrational ways, teaming with a #lender who offers a wide-menu of products ensures that you can navigate the market with options and confidence that you will close.??

The "now isn't a good time to buy" crowd is really just the "music was better in my days when we listened on..." iPods (or in in my case a walkman and discman, ha).? Good timing is a question of needs and goals.? So, work with a team who excited listen to you and to help you navigate the current market.? If you (or your clients) have questions or concerns or are asking "is it a good time to buy," please give me a call.? We can discuss your goals and build a plan that helps you make well-informed decisions that fit your needs.?

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