RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
RISMedia
No Result
View All Result

Preparing for Our Market’s Watershed Moment

Home Agents
By Rick Haase
March 25, 2022
Reading Time: 2 mins read
Preparing for Our Market’s Watershed Moment

business man Hand change wood cube block with percentage to UP and Down arrow symbol icon. Interest rate, stocks, financial, ranking, mortgage rates and Cut loss concept

A watershed moment is defined as “an event marking a unique or important change of course.” The Federal Reserve is tapering and the discount rate is rising, which will continue to put upward pressure on mortgage interest rates, shrinking housing affordability.

During the last week of January, we experienced an interesting occurrence, and it went almost unnoticed. Mortgage refinance applications dropped by 13%, a historically severe fall-off indeed. Of course, it’s perfectly logical, right? As rates rise, fewer mortgage holders would benefit from refinancing, which translates to fewer applications.

But by the time this happened, mortgage rates for a 30-year mortgage had already risen 112 basis points from 2.85% for the same week a year ago to a reported 3.97% national average, up 1.12% compared to that same week. That’s a 39% increase in the cost of housing finance. And it occurred before the Federal Reserve is set to begin tapering their aggressive bond buying this month and prior to the discount rate being raised. These actions will raise rates further in the coming weeks and months.

Why a watershed? Because so many millions of would-be “move-up” buyers have already refinanced their current home loan well below current new mortgage interest rates. This means that the typical move-up buyer, who has traditionally fueled the national housing market with new inventory, will now have to pay a house price premium and a substantial housing finance cost increase. Remember, it was already up 39% over a year ago. This condition is a structural defect in the market and is set to exacerbate the undersupplied housing market challenge.

To verify this, check the difference between the number of new listings being brought to your market for the first 60 or 90 days this year compared to the past two years. Checking markets across the country, we’re seeing a systemic drag on the housing market, with new listings coming to the market showing some significant drop-offs. As of now, it’s down double digits across the country.

As brokers and agents, we need to get busy with our own business development efforts. We need to carry the mindset of navigator of market shifts and not victims of the market. No matter the market conditions, a strong business development discipline will prevail. As one of my mentors said, the markets always have enough business for success; the only question is whether you are doing what it takes for that market to find you.

At United Real Estate offers agents a cloud-based productivity platform called Bullseye, to facilitate new and simplified business development.

Housing turnover rate is slowing, and by equipping our brokers and agents with the right tools, navigation of this watershed moment will provide success in 2022.

Rick Haase is president of United Real Estate. For more information, contact him at Rick@UnitedRealEstate.com or 504-251-3757, or visit www.GrowWithUnited.com.

Tags: BullseyeFederal Reservehousing turn-overMortgage RatesRick HaaseUnited REUnited Real Estate
ShareTweetShare

Rick Haase

Rick Haase is president of United Real Estate. For more information, contact him at Rick@UnitedReal-Estate.com or 504-251-3757, or visit www.GrowWithUnited.com.

Related Posts

Fed Decelerates, Raising Hope for Housing Rebound
Agents

Fed Decelerates, Raising Hope for Housing Rebound

February 2, 2023
Buyers Gain Bargaining Power, but Remain Deterred
Agents

Buyers Gain Bargaining Power, but Remain Deterred

February 2, 2023
UtahRealEstate.com MLS Launches New Showing-Management Software
Agents

UtahRealEstate.com MLS Launches New Showing-Management Software

February 2, 2023
Preparing for Every Stage of Homeownership
Agents

Preparing for Every Stage of Homeownership

February 2, 2023
Power Broker Insights: A Strategic Reset for 2023
Agents

Power Broker Insights: A Strategic Reset for 2023

February 2, 2023
Second Century Ventures Announces Selections for 2023 REACH Australia Technology Growth Program
Agents

Second Century Ventures Announces Selections for 2023 REACH Australia Technology Growth Program

February 2, 2023

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Tip of the Day

Help Your Clients Sell for 28% More

Every listing you represent must be updated and move-in ready. Help your clients sell in the fastest amount of time... See how.

Business Tip of the Day provided by

Recent Posts

  • Fed Decelerates, Raising Hope for Housing Rebound
  • Buyers Gain Bargaining Power, but Remain Deterred
  • UtahRealEstate.com MLS Launches New Showing-Management Software

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kit Email Whitelist Terms & Policies ACE Marketing Technologies LLC

© 2023 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • Reports
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTOR® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2023 Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2023 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

X