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Week-End Review 1/20/23

So, we made it to 2023. YAY!! 2022 brought us inflation, higher interest rates and the relaxing of COVID 19 restrictions. Whew… what a year. In all honesty, 2023 looks like it will be pretty flat over last year. Probably not much economic growth for the country if any at all and looks like we might be headed into a recession.

There’s been quite a bit of lay-offs in the news, but really that has been centered around the tech industry which only makes up about 7-8% of our GDP; whereas the real estate sector makes up between 11-12%. That’s not to say that we won’t see lay-offs in our sector because well, there have been some. Probably will be a bit more…

From Coastal Mortgage Solutions’ perspective, we’ve still been busy. Working harder on the loans we are getting, and some cleaning up of our systems/processes. Doing everything we can to make sure we are ready for a market turn and make sure our clients have the best experience possible. That said, what are our lenders doing? Quite a bit!

A few of our lenders have decided to start offering Buydown options for clients. In a nutshell, you buy down the interest rate. So, you can do a 1, 2 or 3 year buy down. For instance, if you do a 3 year, you’ll have a lower interest rate for 3 years then it will go up after 3 years to whatever that rate may be. This is a good option especially if you are looking to be in a home for a short amount of time or hedging a bet that rates will go down and you can refi in 3 years or so! Aside from the buy down option which directly benefits our clients, there are also things lenders are doing for brokers like us to help pass on savings to our clients, which we are grateful for.

One thing is for sure that this year will be challenging, but at least we are in this together. I can guarantee we here at Coastal Mortgage Solutions are going to do everything we can to get the best rates and terms for our clients AND get those loans closed!