Orion’s brokers know that part of the decision to either buy a home, and obtain a loan, or refinance a current home loan, is based on where a client thinks the housing market is heading. For example, if someone knew with certainty that their potential home was going to drop in value by 30% in the next year, they’d keep renting! No one can predict the future with 100% certainty, but there are some signs that the housing market will continue to improve… And that gives our broker’s clients and homeowners everywhere some peace of mind.

As we head into the end of June, and the end of National Homeownership Month, the war in Ukraine, inflation and interest rates, and the lingering pandemic are on everyone’s mind in terms of the financial sector. The mainstream press is continually focused on “housing.” Housing starts, housing stock, housing inventory, luxury house prices, the list goes on and on. What should never be forgotten is that for our broker’s clients, most of the focus is on homes, not houses. And no one grows up having a dream to be a renter.

The labor market is very tight right now, and unemployment is low. Rates, however, are higher than they were a year ago. This, combined with price appreciation in recent years, has impacted affordability. Home sales growth has eased, but price supports remain firmly in place. Put another way, brokers tell us that there is still more demand than supply in many areas and at certain price points. Furthermore, existing home inventories remain very tight, adding additional upward pressure on prices. As a result, median home prices continue to head higher. It is hoped, interestingly, that price appreciation for housing slows: 20 percent a year is not good. As the saying goes, “Slow and steady wins the race.”

Financing a home, despite Orion removing the “friction” during the process, is not easy. Aside from the down payment, qualifying for a rate that makes monthly payments manageable, and then going through the mortgage origination process with all the documents and phone calls, is enough to scare off some potential qualified borrowers. Over the long run owning a house is one of the best ways to create wealth for the average family, and this is not forgotten by successful brokers working with your valued clients of all types.

‍

‍

‍

‍

‍

‍