Ep. 39 - March 2023 Lending Update: Find Opportunity in the Mess
It’s time to take a deep dive into the highly anticipated March lending update! In this episode, we explore what it means for buyers, specifically those looking to refinance. We break down the increases in FHA, VA, and conventional loan limits as well as the decrease in monthly mortgage insurance for FHA loans by 30 basis points. As expected, we reveal the implications of the job report on interest rates and how inflation data will impact shelter costs. This conversation is full of insightful tips and advice that lenders, real estate agents, and investors should take advantage of now to prepare for an upcoming shift in the market.
So jump in, and let’s get started!
[00:01 - 06:56] FHA loan limits increase, and delinquencies decrease, improving affordability for homeowners
[06:57 - 18:21] VA funding fee reduced and how to take advantage of digital closings for a faster, more efficient mortgage process
[18:22 - 24:36] An update on interest rates in February: the smoke and mirrors of the job report
[24:27 - 30:47] Job report uncertainty and inflation fears lead to a negative interest rate adjustment and its effect on shelter costs
[30:48 - 40:30] Opportunities in the current housing market—what historical data can teach us
Quotes:
"Anything longer than three years in the mortgage industry is a lifetime." - Quinton Harris
"Markets like certainty; they don't like uncertainty. So when uncertainty happens, we don't see favorable adjustments. When markets overreact, it's big. That's why it's called ‘No Reaction.’ And they always overreact to the favor of the market.” - Quinton Harris
"This is your opportunity for your customers to get in before prices start to accelerate.” - Quinton Harris
“If we can find a way to make the numbers work, if we can find a way to negotiate the payment in line, those people will look back in 6, 8, 10, 12 months from now and say, ‘Man, I really took advantage of a golden opportunity here.’” - Daniel Halverson
Resources Mentioned:
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Bank of England is a nationwide lender that takes the time to understand your needs and structure the right mortgage for you and your family. Find your local branch at https://www.boemortgage.com/.
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