Source: Forbes —
It’s time for mortgage lenders to stop comparing 2022 volume and 2023 projections to the refinance-fueled record fundings of 2020 and 2021. The pandemic refi boom is long over, and while home buyers who need mortgages are still absorbing this year’s rate spike, the worst of U.S. inflation that fueled the rate spike is also likely over. Heading into 2023, there are three market factors that set up the purchase market for smart, focused lenders.
First, rates are down more than 0.5% from the October 2022 peak of 7.375% as inflation cools.
Third, existing home sales are down nine straight months, and new home sales are down six of the last nine months, which has slowed home price appreciation in some especially hot local markets and brought on price declines in other local markets.
So, the 2023 purchase market is all about connecting with these homebuyers who need loans, showing them how lenders (rather than media headlines) calculate home affordability, communicating rate and hyper-local home price data to them in real time throughout their home shopping cycle and keeping them confident as sellers get more willing to negotiate.
The smartest lenders blend human advice with digital tools to run this playbook.
The Relationship Moment With Home Buyers And Owners
In this market, supporting highly-experienced loan officers takes center stage because their expertise, connections and processes are valued by borrowers right now.
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