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3 HECM Opportunities in an uncertain market

HECM opportunities uncertain market
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Real Estate Insights by Snapforce |
In this episode, we’re going to examine three advantages reverse mortgage originators can find even in today’s turbulent market. But first, let’s look at the latest developments in the housing sector.

 

With mortgage rates topping 8% for most mortgage applicants with a typical credit score potential homebuyers now find themselves forced to the sidelines. On October 17th a Redfin article noted that homebuyers must earn $115,000 to afford the typical home at today’s median home price. That’s $40,000 more than most American households earn.

 

A confluence of factors including a historic surge in mortgage rates, limited inventory, and increased monetary supply has propelled the housing market to levels that verge on the absurd. Although sale prices have eased in certain markets most remain 25-40% above their pre-pandemic prices. Consequently, the average monthly mortgage payment for homebuyers now stands at $2,866, an 81% surge, according to Redfin. In contrast, in August 2020, the typical principal and interest payment was $1,581, when the average mortgage rate was just under 3% and the median home price was $329,000.

 

Evaluating Home Prices in Real Terms:

This brings us to the importance of examining home prices in terms of real inflation-adjusted dollars.

 

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Editor in Chief: HECMWorld.com
 
As a prominent commentator and Editor in Chief at HECMWorld.com, Shannon Hicks has played a pivotal role in reshaping the conversation around reverse mortgages. His unique perspectives and deep understanding of the industry have not only educated countless readers but has also contributed to introducing practical strategies utilizing housing wealth with a reverse mortgage.
 
Shannon’s journey into the world of reverse mortgages began in 2002 as an originator and his prior work in the financial services industry. Shannon has been covering reverse mortgage news stories since 2008 when he launched the podcast HECMWorld Weekly. Later, in 2010 he began producing the weekly video series The Industry Leader Update and Friday’s Food for Thought.
 
Readers wishing to submit stories or interview requests can reach our team at: info@hecmworld.com.

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