Outside events affect the psyche of those looking to purchase a home. The constant barrage of news from the seemingly ever-multiplying media sources reminds us how difficult it is to afford everything we need in the daily running of our lives. Inflation, the war in Ukraine, Covid – anything that takes money out of your pocket affects your ability to buy a house. More people are now rejoining the workforce at better pay, but it is also more expensive to put food on the table and fill the tank to get to work. When oil prices go up, so does the price at the pump. The cost of gas in California is higher and taxed accordingly, in addition to the need for the unique mixes mandated for summer and winter blends. Rising gas prices, for example, show how publicly traded companies like petroleum manufacturers make big money for their shareholders but at the expense of consumers’ hard-earned dollars. Each of these elements is anxiety-provoking on its own, but when combined with higher real estate prices can be even more discouraging for prospective homebuyers in a housing market with already low availability trying to meet greater demand. The Fed will soon be raising the mortgage rates again to recoup the money spent on the various stimulus packages, and those higher interest rates will limit the number of people who can afford a home. What can help mitigate all of these obstacles to homeownership? Jeff’s guests this week include:

– Annie Chin (New Wave) discusses how popular non-QM loan products have become.

– Ciro DiPalma (Change Wholesale) talks about pricing in the market.

– Charles Giscombe (Malibu Funding) shares the issues between buying and selling in today’s market.