Tapering, Unemployment, and Weather – Oh My!

The Mortgage Voice
The Mortgage Voice
Tapering, Unemployment, and Weather - Oh My!

There’s so much to consider in the current homebuying climate. Should we remain self-sized (what we have is what we’ve got) or should we be looking down the road to when tapering kicks in and the rates will rise? Matching the creative and practical sides of the mortgage market to create balance is important amidst all of the changes going on in the world economy. Surprisingly, the mortgage industry has remained pretty steady during the ups and downs of the financial markets, which has been helpful to many in the search for a new home. The unemployment benefits extended through the epidemic are soon going to cease, and people aren’t rushing in to fill the 10 million jobs available, which has a bearing on the setting of interest rates. The government wants to make more housing accessible, but earning a living wage makes a difference in being able to afford a house and secure a loan. Will the combination of fewer people employed and higher interest rates price buyers out of the market?

Recent extreme weather disasters (fires, flooding, earthquakes) have occurred across the country, and it is critical to discuss this with a lender. Weather conditions can and do affect loans, and delays in closing are common as a result of the need to assess a property’s safety and structural soundness after such an event. The impact of weather on the infrastructure in the surrounding region may also play a role in determining the value of a house and the amount of risk that a lender is willing to take on. Jeff’s guests this week include:

– Jennifer Conrad from Malibu Funding discusses how business is brisk in both traditional and non-traditional markets.

– Luke Manke, also of Malibu Funding, tells Jeff about the differences in interest rates for different loans.

– Tim Wise, Area Manager for The Lender, introduces programs for the broker community.