Mortgage Mario

Are we in a housing market bubble 2021?

housing market bubble 2021

Video Transcript

hello this is mario cardenas i’m a loan
officer with infinity home lending i
hope you’re doing well and you’re
staying safe so
uh the big question that many people ask
me uh is
that are we in a bubble i’m going to
wait to buy a house
because we’re in a bubble and 08 is
going to happen
and the entire market’s going to crash
you know the prices of houses will
depreciate uh long story short
i don’t personally think that’s gonna
happen i think it’s possible that we may
see a little bit of a dip
uh just simply uh due to you know
building supplies
being much more expensive than you know
historically speaking uh and also with
interest rates being
extremely low at historical lows with
you know a surplus of borrowers creating
extreme demand
for houses and um you know causing these
scenarios where you have 25 plus offers
on a house
um obviously that’s going to allow the
house to sell at top dollar
and typically over the listing price but
as far as do i think we’re in a bubble
and an
08 is going to occur i don’t think so
because an 08 occurred because they’re
cdo’s collateralized debt obligations
essentially subprime loans that were
these adjustable rate mortgages that had
no periodic caps that had
basically no regulation to them
whatsoever where
to me it’s a simple math equation where
when you
basically originally get these arm loans
with what are called teaser rates
um a borrower could essentially afford
to pay the loan but once these
interest rates would significantly
increase and have no regulation to them
then the homeowner would ultimately have
to default on their loan
and this happened nationwide so
historically speaking
bubbles are usually market dependent on
it wouldn’t happen nationwide it happens
to specific markets like
um just kind of like living in west
virginia and an alternative source of
energy comes out and the coal mining
um becomes a bus that’s it that’s a
that’s a market dependent thing that’s
going to affect
uh the real estate market there but as
far as an 08 occurring
um i personally don’t think it’s going
to happen
um current homeowners have the majority
of them i believe it’s about
97 percent have conforming conventional
loans um that are at fixed interest
uh generally around three percent or
even below you hear people having 2.01
interest rates i mean the fact that
they have those low interest rates that
are fixed i find it very highly unlikely
for them to
not be able to continue making their
mortgage payments so obviously the
of houses will not increase
um so that will affect uh that will
obviously allow houses to
steadily to appreciate now obviously
when interest rates
steadily increase which due to you know
government spending
um you know inflation um
the basically there will be less
borrowers because they’ll have less
incentive to make an offer in a house
interest rates are higher they’re not
going to get a you know as good as a
deal obviously on a house so
um the supply borrower’s world decreased
so you won’t see these extreme
cases where you have you know 25 plus
offers it might be
you know a few offers on on a house and
that will stabilize
the price point of the house and
won’t cause it to be over inflated but
i just don’t foresee the supply
of houses increasing significantly even
once building supplies
um the prices of building supplies
decrease and they start building more
houses if you’re
obviously closer into you know um you
know places like atlanta they only print
you can’t print more land like they
print uh stock right there’s only so
much land there’s no more
area to build in so i think i think the
houses the price point more or less will
um you know will not significantly
and it’ll just stabilize a little bit
more and you know slowly appreciate
versus seeing these
significant appreciations of price point
again due to interest rates being
extremely low and having a high
you know high supply of borrowers and um
that’s my personal opinion and i know
most experts
agree with that so yeah if you have any
feel free to give me a call at
678-920-2747 or visit my website
that is on the bottom of the screen here
and i’ll be happy to answer any
questions you may have and
another thing too is um if you are in
the market for a refinance
um the fhfa actually eliminated
the adverse market refinance fee
so essentially was a fee that lenders
had to pass on
to the borrower when refinancing and
this was due to
the home economic recovery act i believe
um uh put this fee in order but because
of you know covid uh and many
um you know americans having you know
um hardships and losing losing jobs and
um you know losing significant income um
that the fhfa has actually eliminated
this fee
uh to uh help you know americans that
have been
suffering financially to recuperate some
of their losses so
if you have any questions about that
from the refinance perspective i think
as interest rates are still
low i and with this adverse market
refinance fee being eliminated i think
it’d be
definitely financially wise to
with a loan officer like myself uh and
to refinancing if you haven’t already
done so uh and if you haven’t eliminated
um pmi yet and with how much houses have appreciated uh
it might be worth investigating a refinance from that perspective as well because you actually might be able to eliminate your private mortgage insurance and you know get what’s called an appraisal waiver not even actually have to get an appraiser out to display what your home value is and just from the fact eliminating pmi and getting your interest rate low you would save a ton of money so yeah reach out to me and i’ll be happy to investigate your situation remember everyone’s situation is different so you know don’t go by what your buddy down the road said um you know because their situation financially speaking is more than likely completely different than yours so that’s why it’s good to really focus on your situation have a wonderful day and stay safe

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