In this episode, Jeff describes how the shortfall of the 6M homes that should have been built since 2001 has caused the scarcity of available housing and is driving up prices. With the Fed artificially keeping rates low by buying mortgage-backed securities and treasury bonds, if the anticipated tapering in the market does occur, fewer people will be able to afford homes because of higher interest rates and out-of-reach costs. Should this happen, housing prices will fall, more real estate will be on the market as a result, and more people will then be able to buy homes – a true example of a supply and demand issue.

Some mortgage companies are looking to add real estate and technology arms to expand their services, but real estate is a local business, not a national one. Homebuyers want to know what the neighborhoods are like where they are looking to live, and if an agent is out-of-state, will they have the local knowledge to help their customers choose where they’d be most comfortable? Joining Jeff this week:

– Brenda Scott of Malibu Funding discusses loans for lesser credit scores.

– Maria Schroeder from Quontic Bank talks about low-income buyers.