Rapid inflation has caused fissures to appear in the economy. Consumer spending and corporate investment, which account for more of GDP than net exports, were stagnant in the third quarter. Consumer expenditure on goods declined for the third quarter in a row. Residential investment is likely to drag on growth in the coming quarters, as high mortgage rates and prices have pushed consumers away. Home prices are falling marginally, but a shortage of inventory prevents further falls.
In the mortgage market, individuals who might ordinarily consider purchasing a home may prefer to keep their down payments in reserve, waiting to see whether interest rates and/or home prices fall in the near future. Adjustable-rate mortgages may continue to be more popular among buyers seeking reduced monthly payments in the short term for those who do purchase a property. In addition, customers seeking to access accessible home equity may continue to favor HELOCs and HELOANS over refis.
The non-QM space has changed dramatically in the last year. There is some good news and some not-so-good news. The bad news is that secondary market volatility in the non-QM arena has been high. Because of this instability, prices and rules have changed extremely quickly and dramatically. The good news is that there is still a high demand for loans from gig workers and those becoming self-employed or working part-time on the borrower side. Despite a difficult conclusion to 2022, the non-QM forecast for 2023 is relatively positive.
In such an uncertain market, you may be wondering how to recoup revenue, save costs, and increase loan volume. The new year is just around the corner; are you ready to get started? If you’re seeking new ways to increase profits and expand into new markets, Non-QM solutions supplier AHL Funding can assist.
We continue to guide our brokers through difficult seas, and as a Non-QM pioneer, our brokers may benefit from our three decades of knowledge and competence in alternative finance.
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