This is not to say that there will be no COVIS-19 issues in the Real Estate Lending industry. We may see issues on the supply side for the borrowers we work with. This may include a reduction in available materials (especially due to the near shutdown of the Chinese economy, the world’s largest manufacturer, in recent months,), a decrease in work crews willing to work due to virus concerns, and difficulty with voluntary and involuntary restrictions on vendors involved in the mortgage process (appraisers, title companies, realtors) and situations where personal contact is often normal (closings, open houses, appraisals, and inspections). Further, Interest rates are so LOW and demand so high that Rates do not have to drop, in general terms. So Caution!

We are also likely to see a scenario where the supply of available properties for purchase may increase, as typical owner-occupied purchases will likely drop as some potential buyers may stay in place to avoid the risk of exposure, and sellers may consider avoiding opening their home to prospective buyers. This would allow investors to potentially solve the main problem of recent years, finding available properties. Many investors may even be able to take advantage of this opportunity from the comfort of their homes, as the rise in technology has allowed many to evaluate properties from a distance, preserving their safety as they increase their portfolios.

Historically low-interest rates are expected to help a well, as the number of refinances is expected to jump and so will the delays. Banks in general have been able to reduce interest rates on 30-year Rental and Primary Loan programs due to recent changes from the Fed. Changes like Fed rate reductions cause more benefit to both lenders and investors operating in this space, especially with longer-term rental properties and longer-term mortgages. However, at the same time a demand for loans as quite likely created a interest rate “floor on Rates” based on some recent bank discussions.

It’s easy to see that the next few months are going to be tumultuous, and we will see economic shifts from both the general markets and economic policymakers. However, those involved in the Home Ownership and the Mortgage industry may be able to find increased opportunities due to the fears of the general economy and the uniquely strong position our industry is in to be able to not only ride out but thrive during a time of economic uncertainty. Summed up best by the legendary investor Warren Buffet as, “Be fearful when others are greedy and greedy when others are fearful.”  Our team is ready to meet today’s Lending demands! To learn more please phone 866-310-1112.