I hope this newsletter finds you in good health and high spirits despite the recent challenges that have swept through the real estate and mortgage lending industry. As we navigate the uncharted waters of 2023, it’s evident that the rising interest rates have brought about significant shifts, leaving us all scrambling to figure out the best way to approach this new reality.
** We find ourselves in what can only be described as “The Perfect Storm” **
The surge in interest rates, escalating from a more than comfortable 3.00% range to a daunting rise well north of 7.00%, has posed a considerable challenge for first-time homebuyers. Their buying power has been significantly curtailed, forcing many to reconsider their dreams of homeownership in an already tough and competitive market marked by inflated home prices and healthy competition.
Moreover, this perfect storm has also reduced the number of homeowners willing to list their homes. The fear of losing their super-low interest rates and the prospect of purchasing a new home at double the rate and an inflated sale price due to limited inventory have deterred many from taking the leap.
**Why Waiting Doesn’t Make Sense**
Waiting for interest rates to come down might seem like a logical move, but the reality is that home prices are likely to continue their upward trajectory. It’s a challenging scenario, but there’s a silver lining. Homebuyers can take refuge in the fact that once they’re in their homes, ProVisor Inc. is committed to providing free refinancing for life, ensuring financial flexibility.
Historical data also reminds us that, despite various recessions, the market crash of 2008 was the only instance where home values decreased. So, rather than fearing a repeat, let’s focus on the positive news that interest rates are expected to trend downward in the next 12 to 24 months. This shift should bring relief, with the market loosening up and more homeowners feeling comfortable listing their homes and moving on.
**Weathering the Storm and Reaping the Rewards**
We understand that many have left the real estate and mortgage lending industry, but there’s wisdom in perseverance. Those who weather the storm and stay committed will undoubtedly reap the rewards when the market turns around. It’s a challenging ride, but the light at the end of the tunnel is within reach. Hang in there, stay resilient, and remember – this storm too shall pass.
Jeff Grieshammer NMLS #263742
Senior Loan Officer
ProVisor Inc. NMLS #1802853