A cooling real estate market might not be the news real estate agents want to hear, but for buyers, recent interest rate hikes are anticipated to make home buying less about loveletters and bidding wars, and more about shots for sharp-eyed opportunists. As the crowds get frightened away by news of higher rates, smart real estate shoppers will stay in the game, keep tabs on the market, and keep their options open, because less frenzy means more opportunities — especially for investors.
Low inventory has kept prices on the high side, but economists have seen sales and mortgage application numbers go down, which means recent price hikes are bound to follow that same downward trend. In fact, the Fed’s rate hikes were designed for that very purpose: to douse the overheated housing market.
MBANC’s debt service coverage ratio (DSCR) mortgage streamlines the purchase or refinance process for investors who might want to use this calmer moment to pounce.
For DSCRs, we don’t require income tax returns or bank statements to qualify borrowers — instead, we qualify primarily by using the assessed rental income of the subject property.
We also offer:
- Mortgage amounts up to $4 million for purchases
- Up to $3 million for unlimited cash-out refinances
- 40- and 30-year fixed rate interest only options
- Direct access to principal bankers and scenario desk
- A proven track record of 20-day seamless closings
Competition has been a primary driver of skyrocketing prices, so when competition ebbs, so will home prices — good news for buyers who’ve been bruised in the boxing ring of the late 2021-early 2022 market.
Other data seem to indicate that we’ve already reached the frenzy’s peak. Analysts are seeing more seller price cuts as of late, which they attribute to seller’s (likely misplaced) fears that we are in a bubble at risk of popping.
Yet very few knowledgeable economists believe we are in any dangerous “bubble” or headed for a 2008-style crash (see our previous article, Tonight We’re Gonna Party Like It’s Not 2008, for a handy chart explaining the reasons why).
Rather than popping, the price bubble seems poised to drift slowly to the ground for a soft landing. If you can catch it, it could mean a great opportunity.