April 26, 2022 – Steve Remington, Benchmark’s C.O.O., was sworn in as the 2022/23 President of the Texas Mortgage Bankers Association last month at the TMBA Annual Convention in Austin, TX.
The TMBA’s membership is the largest in the nation, made up of mortgage bankers, banks, credit unions, attorney firms, vendors, technology firms, and more. Remington joined the TMBA in 1998, reverent of the associations impact on legislation through legislative advocacy and policy making for the mortgage industry since 1917. Remington assumed many roles within the non-profit organization, serving on committees, boards, and projects, developing relationships with colleagues/friends he leans on for mentorship.
“I’m grateful for the tremendous amount of networking, and access to industry veterans whose careers span decades longer than my own that have been very successful in our business.”
“Their lessons in servant leadership have influenced my style of leading at Benchmark through flourishing times and moments of uncertainty.”
Steve Remington
Remington calls himself a student of the industry, and one of his goals during his presidency is to educate those in real estate finance, while attracting new members. Leadership development is a personal passion Remington shares with the TMBA. Communicating and navigating challenges and issues on a national level to protect & prosper our industry will be high on his priority list as he serves his term.
It’s the question that’s buzzing around real estate offices, mortgage companies, backyard barbecues, water coolers and passing conversations with neighbors.
The short answer is — we think so.
Yes, it is still a good time to buy.
The long answer is more complicated. Consider these four trends to help you as you make your housing buying decisions.
Higher home prices show no signs of reversing course.
Even before the pandemic, the supply of the housing market couldn’t meet the demand. In 2020, COVID-19 affected the housing market just like it did every other industry. However, we’d soon find out that the real estate market was a double-sided coin.
Let’s set the record straight. If you’re expecting the trajectory to result in a housing bubble ready to burst, reminiscent of 2008’s Great Recession, this isn’t that. The market variables that resulted in the 2007-2008 housing market crash don’t exist now. If higher home prices cause are causing you to hesitate, keep in mind that prices will likely continue to rise. Home prices were rising already before the virus, and multiple variables from the pandemic created greater demand in an already competitive market.
With the introduction of social distancing measures, many began to conduct the majority of their lives inside their homes and, unsurprisingly, wanted or needed more space. Many also sought financial security, preferring a traditional equity purchase that still carried relative liquidity amid the health crisis uncertainty. What better way to adapt to the new world than investing in your home: the very place you planned to ride out the epidemic? Many see it as a timely investment vehicle.
Buying gained popularity.
However, many other Americans had the same idea. Additionally, the COVID-19 pandemic affected the ability and access for individuals to go to work. Companies in the housing industry suffered, as workers were absent due to new mandates among other pandemic-related challenges. As the pandemic wore on, labor and building materials supply chains struggled further.
Earlier, I wrote that, before the pandemic, as well as in its beginning, housing demand had exceeded supply. The difference now is that the supply of home options is extremely low1due to the factors mentioned above, which have resulted in climbing home prices. In fact, Zillow projects a 17% year-over-year rise in home valuations for 20222.
The effects of the pandemic only added more fuel to a white-hot market. Home prices aren’t going down any time soon, even if their rise slows.
Interest rates have started correcting to higher levels.3
At the beginning of the pandemic, in the face of a developing national health crisis, the Federal Reserve took action. They pledged (and proceeded) to buy debt and mortgage-backed securities (MBSs) in an effort to help the economy.4 This resulted in an artificially high demand for MBSs, driving down mortgage interest rates. For a time, this helped add stability to the economy. It made it easier access financial resources, investments, and loans — such as mortgages. It’s not surprising that so many individuals decided to pursue homeownership during the pandemic. Demand was already outpacing supply. The lower interest rates made a home purchase that much more attractive, tipping the balance further.
As inflation has risen, so too has the labor market. The Federal Reserve has noticed, and hasclaimed that they will begin selling some of their balance sheet. This move serves tocorrect mortgage interest rates back up to normal market levels.5
A more balanced market is good for the economy, in general. However, higher interest rates will only decrease buying power for home buyers. Additionally, home buyers who have waited for prices to fall just may see prices at least hold, if not increase.
Rent price increases are breaking records6 and making headlines.
It is well-known that rent prices rise over time. This is due to a variety of factors: inflation, rising utility costs, location value, and the list goes on. With reduced supply of homes and renter instability during the height of the pandemic, rent prices are up 14% year-over-year, with some up over 30% in many major metro areas.7
Renting is a great option for those who want to stay flexible. But for those looking to optimize their finances, it’s helpful to remember that 0% of your rent payment builds your own equity. Since it’s not part of a home investment, you’ll never see any of that money again!
Although a down payment may sting at first, a fixed rate mortgage payment does not increase over time. Compare that to rent, as it continues its daunting upward climb. Renting gives no net worth gain, and leaves you at the mercy of your landlord and binding lease agreement.
In some cases, after the down payment, a mortgage payment may be lower than rent for a comparable space. Be mindful where your money is actually going. You may be able to gain some equity for your housing costs.
The cost of waiting may be higher than you expect.
For many home buyers, the down payment is the hardest obstacle to overcome. With the home price index rising8, it will become increasingly difficult to save enough for a down payment. Down payments are measured as a percentage of home pricing, and are often tens of thousands of dollars. It can be quite a challenge!
Upward trends in demand, interest rates, rent prices, and the Consumer Price Index (CPI) means saving could become more difficult. If accounting for normal expenses and goals wasn’t enough, you will also be contending with market forces beyond your control. Should these trends continue, It will be harder to save for a ~12%9 down payment.
Depending on your situation, you may need less for a down payment than you think. Building your equity sooner means you could actually benefit from rising home prices. Even in a sellers’ market, getting into a home you can afford now may benefit you in the long run. However, we’d still advise that you exercise due diligence as you determine the best real estate investment for your situation.
8 https://www.spglobal.com/spdji/en/indices/equity/dow-jones-us-real-estate-index/#overview
9 2021 median down payment: https://www.nar.realtor/sites/default/files/documents/2021-home-buyers-and-sellers-generational-trends-03-16-2021.pdf
In the current housing climate, the cost of waiting to make a move in the real estate market will most likely cost you more in the long run.
Buying a home is a long-term decision that should be made with careful consideration. Financial decisions should be strategic. At Benchmark, we provide education to hopeful buyers regarding trends in the market and how they could affect future plans. We are committed to listening to your vision, and getting you the right mortgage for your future success.
Contact your local Benchmark branch. Contact us today for personalized information. Call me yourself or request a call from me. WeI would be honored to provide you with our famous excellent service for your new loan.
March 25, 2022 – (https://www.nammba.org/nammba-news/2022/3/23/y01ossl45mus481lro33y10vzs16iv)
Today marks the start of Benchmark’s partnership with the National Association of Minority Mortgage Bankers of America (NAMMBA).
Benchmark Mortgage is a nation-wide lender headquartered near Dallas, TX. For over 20 years, the company has built a dynamic lending community. Their entire business is driven by focusing on relationships. They are a community of mortgage professionals who are united by the Benchmark Core Values. These values drive the company’s culture, shape its paradigm, and have been the foundation of their success. For more on Benchmark’s core values, click here: https://benchmark.us/the-benchmark-way/our-core-values/
This partnership with Benchmark brings NAMMBA closer to their mission of increasing the engagement of women and minorities in the mortgage industry. The mortgage industry is historically homogeneous and NAMMBA hopes that this partnership will be just a small part of the path to changing that.t
“We are so excited that Benchmark decided to come on as a partner to create a more diverse mortgage industry,”
“Cooperation and collaboration are key to bringing more young people, women, and minorities into this industry and which leads to fresher ideas and ways of doing business.”
NAMMBA Founder/CEO Tony Thompson, CMB
Benchmark’s motto Is “Benchmark brings you home.” Every day they work hard to ensure that the “You” In their motto means everyone. They do not discriminate against any customer and strive to provide a first-class mortgage experience for all. Benchmark’s core values include Relationships and Excellence, and these demand that they continuously support the movement for equality in all the communities where their clients live and work. Benchmark is committed to providing equal access to everyone who desires the American dream of home ownership.
“Benchmark is a remarkable community of mortgage professionals. At Benchmark, we have a clearly defined set of core values that we live out and practice every day. Having carefully selected each team member one person at a time, and with an average of over a decade of individual experience, we have assembled what we believe is the best team in the mortgage industry today. Not only does our team go the extra mile to serve our branches, loan officers, and support teams, we also stand ready to deliver an exceptional experience that is second to none for our customers. Please reach out and let us know if we can help you take advantage of the Benchmark opportunity today”.
Is Refinancing always a good idea? That depends on who you are, and what your reason is for refinancing. In this post, I give an example so you can make your own informed calculations.
If you or someone you love has served our nation in military service, thank you for your service to our nation. Happy Veterans Day from Benchmark.
The story of Veterans Day began on November 11, 1918, when the Allied nations and Germany went into armistice, bringing an end to “the war to end all wars.” In November of the following year, President Woodrow Wilson said,
“To us in America, the reflections of Armistice Day will be filled with solemn pride in the heroism of those who died in the country’s service and with gratitude for the victory, both because of the thing from which it has freed us and because of the opportunity it has given America to show her sympathy with peace and justice in the councils of the nations…”
and proclaimed November 11 as the first commemoration of Armistice Day. Originally, the day was to be celebrated with parades and public meetings, as well as a temporary closure of business at 11:00 in the morning.
November 11 became a federal holiday when a resolution was passed by Congress on the fourth day of June in 1926, stating,
Therefore be it Resolved by the Senate (the House of Representatives concurring), that the President of the United States is requested to issue a proclamation calling upon the officials to display the flag of the United States on all Government buildings on November 11 and inviting the people of the United States to observe the day in schools and churches, or other suitable places, with appropriate ceremonies of friendly relations with all other peoples.
An Act approved on the thirteenth day of May in 1938 made November 11th a legal holiday dedicated to the cause of world peace to be celebrated as “Armistice Day,” intended to honor veterans of World War I.
After the sacrifice of many during the second World War, and after the conflict in Korea, the 83rd Congress amended the Act of 1938 in 1954 to replace the word “Armistice” with “Veterans”, transforming the holiday we celebrate on the eleventh day of November into a day to honor all American veterans of all wars.
Also in 1954, President Dwight D. Eisenhower stated,
In order to insure proper and widespread observance of this anniversary, all veterans, all veterans’ organizations, and the entire citizenry will wish to join hands in the common purpose. Toward this end, I am designating the Administrator of Veterans’ Affairs as Chairman of a Veterans Day National Committee, which shall include such other persons as the Chairman may select, and which will coordinate at the national level necessary planning for the observance. I am also requesting the heads of all departments and agencies of the Executive branch of the Government to assist the National Committee in every way possible.
President Dwight D. Eisenhower in his Veterans Day Proclamation on November 8th, 2954
While there have been other minor changes since then, Veterans Day has been celebrated as such since 1954, on the history of the day set aside to celebrate peace at the end of the first “war to end all wars.”
To all who have served, Thank You. Happy Veterans Day.
Housing inventory is one of the factors that can dramatically affect the temperature of the real estate market. Less inventory means potentially more competition and higher prices. Whether you’re a buyer or currently in the seller market, this can determine your strategy. Like most investments or assets, housing inventory can fluctuate anytime. This is why it’s important to gauge your options before buying a property.
Quick Update: Real Estate Industry Trend
Despite the ongoing economic challenges, housing prices continue to rise. This just shows the resilience of the real estate industry. As many experts have predicted, home buying and selling prospects have significantly improved in September 2020 from pandemic lows. Homebuyers are moving much faster than this time last year. According to the forecast, this upward trend could continue for three to five years.
Low Mortgage Rates: Biggest Factor in Today’s Housing Inventory Shortage!
According to an article recently published by Business Insider, low mortgage rates are one of the main reasons for the current housing inventory shortage. Several reports also show that a house is the hottest “pandemic purchase” in the country.
Today, property investors, realtors, and even casual homebuyers are now on the hunt for the best deals they can get. This makes it more challenging for buyers to find a property that suits their budget and needs.
Let’s have a look at these key takeaways:
Residential properties have become a valuable asset, as more and more Americans take advantage of low mortgage rates.
Existing home sales continue to surge forward for the last 3 months since the real estate market reopened from the shutdown. It soared to a 14-year high in the previous two months. There are also reports of upcoming home sales.
Experts’ forecasts revealed that the country may experience a housing inventory shortage for the next coming years. There are new residential property projects, but not enough to keep up with the demand.
Other Important Predictions From Industry Experts
Buying a house is a big investment. Whether you’re doing this for personal reasons or as a future investment, it’s always better to keep learning about the real estate market. A good way to do this is to consider investors’ expert opinions. Here are some forecasts for the real estate market from several experts:
The demand for refinancing and housing loans remains at large
The high demand for refinance and housing loans has raised the competition among realtors, property managers, and lending officers. Many mortgage organizations, particularly new companies may have a hard time competing. Potential buyers may also experience some delays with loan applications.
Homebuyers need to explore more options when purchasing properties
Due to the housing inventory shortage, homebuyers need to exert more effort when looking for prospect properties. Be resourceful. You might want to check out some auctions, foreclosures, short sales, and bank-owned properties.
Location will still be one of the keys
Homeowners are adapting to a new lifestyle due to the current pandemic state. However, due to this upward trend and housing inventory shortage, it may be difficult for homebuyers to find the perfect home for themselves or their families.
The rise of new mortgage company startups and lending officers
Despite the global crisis, the US housing industry still looks solid,. This means many investors may be looking for opportunities to join the bandwagon, so don’t be surprised if there are more mortgage organizations in a few months or so.
Notable Reminders for Homebuyers
Although now is a good time to buy a house or invest in a property, the entire process can be a lot more challenging due to the housing inventory shortage. As a homebuyer, it’s important to find a trusted mortgage broker or loan officer. These professionals can help simplify the process for you. Just make sure to choose loan officers with several years of industry experience.
Benchmark is one of the leading mortgage companies in the United States. For more than two decades, we have helped our clients find the right loans and manage their mortgage needs. We have seasoned mortgage consultants in over 80 branches nationwide, ready to discuss the best home buying options that suit your budget and needs. Through the years, we’ve been delivering excellent customer service, by providing competitive rates and the most efficient loan processing!
So, if you’re looking for an expert loan officer you can trust, send your loan application today!
An interest rate determines how much money must be paid in a mortgage payment. The higher the rate, the higher the interest payment. Do you agree that buying now really does mean buying more?
Benchmark's PCS Nation wants to make sure that all of our military members have all of the resources they need to make their PCS move a little less stressful. In this episode, Benchmark VA Loan Boss Jason Stier sits down to interview C.C. Gallagher, creator of the Stressless PCS Kit.
