Update on the Residential Mortgage Industry

Over the past 100 years, there have been 11 recessions and 3 depressions. Each of the recessions lasted an average of 11 months. During those periods, eight times as many millionaires were made than during the other 84 years of economic prosperity (from The Concise Encyclopedia of Economics by Geoffrey Moore and The Forgotten Man – A New History of the Great Depression by Amity Shlaes).

Lately, we have seen wide swings in both stocks and bonds. It has reminded us that financial markets are really based on confidence. What are the greatest investors in the world doing? Warren Buffett is investing in companies. Donald Trump is buying real estate. Now, more than ever, is the opportunity to build wealth.

In our local market, home values have stayed flat, or perhaps declined slightly, but babies continue to be born, young people graduate from school and get jobs, and demand keeps growing.

Great financing is still available. While a home buyer with a great credit score and a down payment enables them to receive preferred rates; we are still offering 95% to 97% financing for even low scores.

While we have seen some financial institutions close their doors, it is not the norm. The vast majority of banks are ding okay; SunTrust recently became the 5th largest mortgage company in America and we have been awarded the JD Power & Associates Customer Service Award for Mortgage Originations.