Interest rate increases and financial market uncertainty have caused many to push the pause button on their home purchase journey.  Why?  Interest rates are still very low, relatively speaking.  In the 1980’s rates were three times higher.  Believe it or not, people were purchasing homes at the time.  Those people are still here and eager to talk about it!  The market has been a little shaky this year.  I’ll give you that.  But, how much does the secondary market really affect the housing market?  Let’s zoom out and look at some important factors before jumping to an answer.  My research indicates that we are at least six years behind on residential home building in the United States.  The phrase “lack of inventory” has become a part of everyday conversation in the residential real estate community across the country.  The result has been homes selling for tens and even hundreds of thousands of dollars over list price and upwards of forty purchase offers for sellers to sort through.  There aren’t enough homes for the amount of buyers in the market.  Meanwhile, rent prices have increased every year.  In most real estate markets, it’s actually a smaller monthly cost to pay a mortgage than to rent (pay someone else’s mortgage).  Here’s my point: the real estate market is insulated from the secondary market, to some extent, because we are experiencing a nationwide shortage of homes while the demand for homes and cost to rent are increasing.  This will be the case for the foreseeable future.  So, make peace with yourself about interest rates and please understand that the house you are eyeballing online, the one with the awesome kitchen, will cost you more in a year from now even if the secondary market continues to struggle.
Written By – Will Bush
Sr. Loan Officer with Affinity Home Lending
NMLS: 1410602
GA RMLO: 70948
FL RMLO: LO76819 • CO RMLO: 100530369
TX RMLO: 1410602 •

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