![]() ![]() Those who are tired of paying rent are purchasing homes and starting to build equity, according to Wax. While mortgage rates are high, rent in the Tampa Bay, Florida market has also been rising. Wax said about 50 to 60% of his clients are first-time homebuyers. “I’d say there are some buyers who are actually settling, even if it’s not their dream property,” he said. Right now, buyers see about 10 to 20 properties, and when they find a home that fits their criteria, “they pounce on it,” Wax explained. The pendulum hasn’t swung back to where buyers are asking 10, 15, 20% lower than what listings are for.” “It’s not so much that it’s more of a buyers market, but it’s less of a seller’s market,” Sam Wax, partner and loan originator at My Easy Mortgage, said. It’s not as crazy of a sellers market as it was two years ago when buyers were sending love letters to real estate agents - and contingent offers were non-existent, LOs said. In a smaller origination market, LOs are looking to expand their market share among people who are still looking to move – whether it be for new jobs, marriage, or growing families. “I’ve got several pre-approvals out there where people just can’t find what they want and the rates are throwing them off,” Monsoon said. In this higher-rate environment, buyers can’t find homes, which, in an ironic turn, can lead to bidding wars in areas that are safe, have good school districts and have nice properties. The lack of inventory makes business even more difficult for loan officers, whose real estate agent referral partners simply don’t have many buyers ready to pull the trigger. Existing homeowners who locked in mortgage rates or refinanced to the 2.5% and 3% levels during the pandemic years also have no incentive to give up their low mortgage rates for a higher mortgage unless they absolutely have to. ![]() Rising rates will likely scare buyers away from the market, as it makes monthly mortgage payments less affordable, loan officers interviewed by HousingWire said. With the industry cooling down slower than expected, LOs are having to work harder and get creative to overcome the double whammy of surging rates and a lack of inventory. The combination of an economic uncertainty, high mortgage rates and persisting affordability challenges will further reduce purchase demand, which keeps Monson and thousands of loan officers up at night. “It’s almost like there was a false start,” Monson said. Monson had hoped for a “spring rush,” but recently, somebody turned the spigot back off. He was cautiously optimistic for a better 2023. There were leads, referrals and action in January, after people returned from holiday vacations and rates declined, said Don Monson, branch manager at Sente Mortgage. ![]() It does not store any personal data.It felt like somebody turned on the spigot. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. The cookie is used to store the user consent for the cookies in the category "Performance". This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. The cookies is used to store the user consent for the cookies in the category "Necessary". The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". The cookie is used to store the user consent for the cookies in the category "Analytics". These cookies ensure basic functionalities and security features of the website, anonymously. Necessary cookies are absolutely essential for the website to function properly. ![]()
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