Buyers Hesitant?

Mortgage and Lending with CMG Home Loans NMLS 248937



Are your buyers or Sellers hesitant?  With the combination of rates being at the highest levels for years and prices up, and the Media putting a negative spin on EVERYTHING… Can we blame them?  Probably not… but we certainly can educate them.

First up: Prices are not likely to go down. Take a look at this chart:

For the past 40years we have averaged 2-2.5 million units listed for sale in the country. We have been struggling with less than half that average for a few years. What you can’t see on this chart is; of that current inventory number, over 30% is under contract so the available number is more like 700,000 homes.  In 2007 as the bubble popped, we had nearly quadruple the inventory with about 36,000,000 less people in the country.  Prices have gone up because of basic supply and demand.

In the past 63 years housing appreciation has averaged 4.34%/year. So, in a normal market that $400,000 home will likely be $418,000 next year. Even with higher interest rates today, modest appreciation will negate the higher payment.  If the forecasts are correct we should also see rates in the 5's or 6's in the very near future as prices continue to climb...  the downside to lower rates will be increased competition in the market as more buyers are able to qualify with lower rates.

I really do not think we will see 3s or even 4s again for Mortgage rates.  but 5s and 6's are very likely.


Give me a call for all your mortgage needs.

Robert Rauf 
Mortgage Loan Originator NMLS# 248937
or my blog: 
Office: (732)908-4868  Cell (732)740-0175

Since 1987 I have been helping my clients fulfill their dream of home ownership! CMG Home Loans  is located at 222 Commons Way Toms River, NJ 08755. NMLS #1820. Visit for more information. NJ Mortgages, New Jersey Mortgages, Mortgages in NJ, mortgage in New Jersey, Mortgages in New Jersey, Toms River NJ 08753, Toms River NJ 08755, Brick NJ 08723, Brick NJ 08724 Mortgage in Ocean County NJ, Mortgage in Monmouth County NJ, Jackson NJ 08527, Howell NJ 07731, Lacey 08731 08734, Beachwood 08722 Bayville 08721, 

Comments (2)

Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Good Morning Robert and thank you for the great interesting information in your blog.  Make it a great week.

Nov 27, 2023 09:15 AM
Robert Rauf
CMG Home Loans - Toms River, NJ

Will Hamm You are welcome!  I hope you had a great Thanksgiving.

Nov 27, 2023 09:36 AM