Experts analyze mortgage myths impacting homebuyers' decisions
The mortgage sector is often misunderstood. While some first-time homebuyers view it as a complex and daunting sector, the truth is far more nuanced.
This was the focus of a recent segment on Mortgage Professional America’s (MPA) The Big Question, where industry experts shared insights on shifting public attitudes and the realities of the market.
Christopher Dorin, VP of president of sales at RCN Capital, believes that the perception issue stems from a lack of comprehensive information.
“For most people, the purchase of the home is the biggest financial decision they’re ever going to make,” he said. “It’s the biggest investment that they’re ever going to make. And if I’m just getting bits and pieces of information hearing, well, inflation is high, rates are high, and it’s hard to buy a home, and I’m not doing my due diligence to figure out ‘well is that right for me? Is that my situation? Is that my experience?’”
While headlines may suggest high inflation and soaring rates, Dorin points out that the reality is different. Inflation stands at about 3.2%, and the US economy continues to display resilience. The narrative, therefore, needs to shift toward a more informed perspective.
Marianne Kozak, EVP of national wholesale sales at LoanStream Mortgage, addresses another common misconception: the idea that now is not a good time to buy a house due to high rates.
“Mortgage rates are higher than anybody’s been used to, but also home prices are higher. That’s the challenge. Home prices are higher, so people don’t want to buy at a higher rate,” Kozak said.
She argues that this presents an opportunity for buyers because when rates eventually drop, competition for homes will intensify. Many potential buyers are currently waiting on the sidelines, anticipating favorable conditions.
If you want more expert perspectives like these, watch the latest “Big Question” episode for more insider scoops.
