What’s happening in our market?

Watch this week's episode for some quick news about Interest Rates, changes for Investors, and Home Inventory!

Jesse Taff:  What's up everybody, Buying the 208, I’m Jesse Taff, Bryce Gonser. We're out here in downtown meridian and want to share a market update with you, housing, and finance.

Bryce Gonser:  Yeah. So over here at Heritage Top house right now, guys. So the first thing is, and I've talked to a lot of my realtors, I've tried to put it out on social media. But a lot of you out there looking at second homes and investment properties, there's some pretty big changes coming to just the overall market. So as of April 1, Fannie and Freddie came out and stated that, now that any servicer for all loans can only allocate 7% of their books towards second home and investment properties. So broken down in English, what that means is that, for example, Penny Mack, one of the largest servicers out there, when this came out, had 14% of their books that were just towards second home and investment properties. They immediately started to pile off those different loans to get that number down to 7%. So what you're gonna start seeing guys, is that different banks, different mortgage companies that service off to some of these bigger servicers, as those numbers start to creep up towards that 7% on their books, you're gonna start to see rates go through the roof on second home and investment properties intentionally to basically deter people from going and getting those types of products, because they can't handle them. So what you're going to see is, rates start to go through the roof, second homes, investment properties, and you're going to see a lot of stuff starts to go Non-QM. So what that means is like private money, hard money, different portfolio products, coming back out, that isn't going to be a standard, you know, quote, unquote, conventional type of loan. So that's gonna make a huge change. Unless that's, you know, change back, it's basically taken back off, who knows what's gonna happen. But rates are definitely, you're starting to see them already start to creep back up for those different products.

Jesse Taff:  Yeah, so the biggest takeaway for that one is one, if you're sitting on the bench or the sideline, you might want to jump in before they go up. And then two, stay in touch with you know, a professional that's keeping an eye on that stuff, as well as professional in the real estate side. Because just because rates go up doesn't mean that investment isn't as strong, you just have to run the numbers differently, so.

Bryce Gonser: Exactly, exactly.

Jesse Taff:  Yep. And then real quick on the housing side. So first, just wanted to give a quick shout-out to the Waypoint team and a pat on the back for myself via the circle of excellence awards for realtors in the Treasure Valley that came out a few more weeks ago. And both the team and I hit the gold production award mark. I’m super excited, a huge accomplishment, thanks to all of our clients. And really, we're already gonna blow past that goal this year. Thanks to all of you and all the referrals that you guys have been able to provide and the clients we've been able to get into and out of their homes. So yeah.

Bryce Gonser:  Fantastic, that's awesome.

Jesse Taff:  Exactly. Yeah. So super excited about that. And then quickly, just wanted to say, if you're getting discouraged with the market, we are seeing some inventory pop back up, springs helping that out. And there's probably half a dozen to a dozen big developments come in that will really start to break ground and start building vertical this summer, to early fall. So we're gonna see a lot more homes available. Start looking now, start talking now. And plan ahead.

Bryce Gonser:  Awesome. Guys, if you have any questions, drop them below, we'd love to see you guys follow any of our platforms. We'll talk to you soon.