Ahwatukee Mortgage Expert Warns of Panic | Immovable
Ashley Mason, a mortgage originator with Home USA Mortgage, says it’s time homebuyers heard from a local professional about what’s going on in the market.
The mother-of-two from Ahwatukee argues that there’s too much misinformation circulating online about recessions that isn’t immediately applicable to the Phoenix-Metro market.
Mason cautions potential buyers against using “bad” generic information shared online to make very specific local decisions.
“I want market participants to hear directly from an insider what the good news is,” she said.
“Talk to a Loan Officer [or originator] is the best way to go” when trying to take the pulse of the market, she said, adding that a local expert can “give you information that makes sense for your credit, down payment and other situations. financials you might have” in the correct context of local market trends.
Mason offers three considerations for homebuyers to dispel several now-common fears that make their purchase hesitant or wait completely.
First, Mason addresses a looming recession with “Don’t Be Afraid to Buy.” Millennials, in particular, are worried and hesitant to buy a home because of what they witnessed during the stock market crash of 2008.
“I get asked every week, sometimes daily: do you think the market is going to crash?”
However, no one wants to end up upside down in a big loan, said Mason, who has worked in the mortgage industry since 2014.
“Great Recession market indicators are very different from current market indicators. Some point to a recession, but not necessarily a recession. [concurrent] real estate crash,” she added.
Some of the key differences she noted include more conservative lending guidelines and better credit profiles for applicants, overall. Past “free lending” practices placed buyers in high-risk mortgage contracts that could not realistically be sustained.
Most buyers are now sticking with the safer 30-year fixed rate mortgages, compared to the initially attractive but riskier adjustable rate mortgages.
Trends like these will “avoid a crash,” Mason believes.
Next, Mason says home values and buyer competition are relatively stable now. “The dust of COVID-related market influences is starting to settle,” she reported.
Although the housing market is constantly changing, “Phoenix’s inventory is on the rise,” she said, adding that this means sellers will have to be less aggressive with their asking prices as buyers have more choice. options.
“At the start of the year, the Phoenix-Metro area had about 5,000 homes available,” Mason said. “Right now we’re hovering around 10-12,000.”
Those numbers might reflect typical summer seasonal sales, but in general, Mason said shoppers can expect to see sky-high prices slashed.
In addition, “to have a balanced market, we need about 30,000 available homes”.
Mason predicts that the tension between supply and demand will ensure that home values ”will continue to rise, even in a recession.”
Finally, on rising interest rates, Mason said they “may be higher than two years ago, but historically they are very low.”
Since real estate is a long-term investment, “you can get into it this year around 5%, but it doesn’t last forever”.
Due to price spikes seen in recent years, rising home values ensure that “buyers will continue to gain equity.”
Lending rates will eventually drop again, and Mason suggests planning ahead for a refinance opportunity. Homeowners can watch for future offers that will reduce monthly payments by at least $200.00 or those with terms that can lower interest rates by 0.5% or more.
There are usually upfront costs for re-fitting, but even with those being rolled back into the new loan, Mason said, “it saves homeowners huge amounts of money in the long run.”
Mason has been an Ahwatukee resident for seven years and began her mortgage career as a loan processor, working behind the scenes.
“I know how to streamline the process, educate them on the product, present it in a simple way, and then get a loan from A to Z as quickly as possible.”
Mason believes that asking questions and discussing concerns about making important financial decisions doesn’t have to be an uncomfortable situation.
She encourages Ahwatukee residents to reach out, even in the preventative stages of home buying, adding “Informed pre-planning, even years in advance, is appropriate and can be done without pressure. of sale”.