Vice President of Mortgages, Josh Summerfield joins Lynne to wrap up 2023 and discuss what the mortgage and housing market may look like in 2024.

 

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0:00:07.7 Lynne Jarman-Johnson: Money, I’m Home for the Holidays.

0:00:13.1 Josh Summerfield: I can’t sing like that, Lynne.

[laughter]

0:00:15.2 JS: I love it. I love how you passed it off, but it just wasn’t going to work.

0:00:18.9 LJJ: Yes, we are home for the holidays. I’ll tell you what, we’re wrapping up a great year here on Money, I’m Home. And our podcast this week focuses really on the end-of-year recap and looking into our crystal ball with Josh Summerfield, our Vice President of Mortgages here at Consumers Credit Union. Thanks so much for being with us today. Josh, thanks for being with us today.

0:00:37.9 JS: Yeah, thanks Lynne. Always a pleasure and always fun, especially around the holidays.

0:00:41.8 LJJ: Well, I do love your festive apparel.

[laughter]

0:00:44.6 JS: You know it’s making my hair look better.

[laughter]

0:00:46.2 JS: I have to say that.

0:00:48.6 LJJ: You know speaking of making things look better, we’ve had a little bit of a bumpy year. Is next year where it’s going to look a little better?

0:00:57.5 JS: Yeah.

0:00:57.6 LJJ: I keep hearing glimmers, but then I think, “Ooh, I don’t know.”

0:01:00.2 JS: Right, yeah. I mean nobody’s got that crystal ball, right? But yeah, this year has been … 2023 has been a challenge and it’s been, as I like to call them, an opportunity. In ’24, we’re excited about ’24. I think there’s going to be a lot of good things that happen. There are some positive signs heading into ’24, rates a little bit. Yeah, we’ll see. I’m excited about the prospect of what it looks like.

0:01:23.3 LJJ: Now, as you’re listening, you might be looking for a house right now. And I think one of the things that’s happening on that perfect storm is inventory. How’s West Michigan doing on inventory? It feels like there’s a little bit more going, but people are still afraid to move.

0:01:39.1 JS: Yeah, inventory has been a challenge all year, as we’ve talked about in past conversations, but we’re starting to see a little bit of break there. We’re starting to see a little bit pick up in some of our areas of West Michigan. It’s still low, obviously, and we’re still under two months of inventory on the market.

0:01:55.6 LJJ: That’s just something, isn’t it?

0:01:56.5 JS: Yeah, it’s been interesting to watch, for sure, and what impact that’s had on houses. We still have tons and tons of pre-approved buyers that are out there ready to look, but, you know, just looking for that perfect house and we’ll see how that translates into 2024.

0:02:10.8 LJJ: I read an article in The Atlantic over the weekend and the author wrote … Had done a survey with a lot of the larger mortgage companies and said, “when is going to be that time to buy a house?” And it came back, “Maybe 2030.”

[laughter]

0:02:25.6 LJJ: What? 2030?

0:02:26.9 JS: Yeah, that seems like a long way away. It’s really probably not that far away, but is there ever a perfect time to buy a house? No. It’s all based on that individual circumstance, right? Today, it might be a good time for me to buy a house. It might not be a good time for you to buy a house and vice versa. It all comes down to individual situations.

0:02:46.2 LJJ: You know, I really like the fact that you talk about it in the sense of, “Think about your own personal needs in life,” and that rates will come down at some juncture. There’s always such a word as refinancing.

0:02:58.2 JS: Yeah.

[laughter]

0:02:58.9 JS: Yeah, we’ve kind of forgotten about that for a while, right? because it just hasn’t really been an option for most people, but that’s going to be out there. We’re going to have some opportunities before 2030, I would say, that you’ll be able to refinance and get yourself maybe into a little bit better of a situation than you did when you bought the house.

0:03:16.9 LJJ: There’s been some bumps in the road in the sense of some of the news reports about commissions and that the United States is different than many other countries and how commissions are actually put into the sale of a home. Are you seeing that that might be changing, Josh? Or is it just something that’s just a lot of buzz right now?

0:03:37.4 JS: Yeah, right now, still a lot of buzz. Something we’re definitely keeping an eye on because it could have impact on the industry and there’s a lot to be figured out with that. It could take years for it to all play out and for us to really understand what impacts it has on our homebuyers and lending on those homes.

0:03:57.8 LJJ: So, when a homebuyer finds out about the commission structure, can that be changed if they say, “I want to be a little bit smart here with my money,”? Or is that a law that is in place? Or just a rule that is in place with realtors and then the buyers and sellers?

0:04:14.2 JS: Not really a law. I mean, there’s always negotiation, right? Buyers, sellers can have those conversations. And I think that’s what really, they’re trying to get down to, is, “Let’s make that a little bit more transparent and make sure people understand what they’re getting into when they go into this big transaction.”

0:04:27.7 LJJ: Now, here we are at the end of the year. I want you to look back a little bit. We’ve had some great conversations. Josh, what’s your favorite thing to talk about when you listen to members’ needs and what’s going on with our mortgage loan officers? What kind of advice can you give us all this year?

0:04:44.5 JS: Yeah, this year, going into ’24, when I’m talking to our loan officers, it’s just, be excited about it. It’s going to be a fun year. We’re lots of prospect for opportunity heading into ’24. Same with our buyers that are kind of sitting out there waiting. We have, like I mentioned, thousands of pre-approved buyers out there that are ready to buy. And you kind of just be patient and let’s see what happens in 2024. Honestly, I think it’s going to be a great year for all of us.

0:05:10.5 LJJ: So, when there is a pre-approval that takes place and you get locked in on a pre-approved number, how long does that last? And then when should people start thinking about, “Okay, that house that I wanted didn’t come up, but maybe I can get another pre-approval going?”

0:05:23.8 JS: Right, yeah. So we kind of re-evaluate after 90 days. It really has a lot to do with the credit report and how long that’s good for. And we just have to refresh some things. Same with income and assets, when we look at those. They expire after so long. So, after 90 days, we start to look at refreshing your pre-approval. So that way when you go out and look for those houses, you know you’ve got the most up-to-date information and you don’t have to worry about, “Hey, am I still good for this house?”

0:05:51.0 LJJ: Right, no surprises.

0:05:52.2 JS: Yeah.

0:05:52.8 LJJ: So here it is. We are ending 2023, heading into 2024. A lot of people make those New Year’s Resolutions list. Is there a list that homeowners or homeowners-to-be should be making so that they are ready to purchase that home?

0:06:08.2 JS: Yeah, I think a lot of us start to think about those resolutions, the weight loss, the getting in the gym. I think those are on my list right now. But as far as homeowners go, as we prepare, if they’re looking at probably getting ready to sell, there are some things on that list. And part of that would be just to start the conversation with a lender, if you’re going to be getting a loan on the new house, assuming you’re leaving that house and going to a new one. And then a real estate agent, just, “What are the little hot-button items that I need to do around my house to kind of get it ready to list? Do I need to go into great detail and fix all these things? Or are there just a couple quick ones that I can do that’ll make my house more show-worthy?”

0:06:50.4 LJJ: I love the checklist. Get a realtor, get an MLO, look around your house. Pre-approval?

0:06:57.1 JS: Pre-approval is a big piece of that. That follows … That’s 1A after you get your lender.

0:07:03.1 LJJ: Now, how important is the lender-realtor relationship? Because I know that I’ve bought and sold a couple of houses, and I’ve had some wonderful relationships with both, but they weren’t together in that. But I think that that’s really needed now, don’t you?

0:07:18.4 JS: It is super important. You want those people to be working in tandem for you, and not really … You don’t want the friction between them. We’ve been in situations … I’ve been in situations as a lender in my career where people haven’t necessarily been on the same page and maybe don’t have the same interest. And you want to make sure they’re all working towards that same goal. It’s very clear that the three of you have really met together and laid out, “Hey, these are my goals through this transaction, these are how I want my loan to look, this is the house I want, can we fit all these things into the right package?”

0:07:54.6 LJJ: You mentioned putting a bow on it, making sure that you’re ready. But I think that one of the things that we all do, especially when we’re out looking for that brand new home that’s your dream home, it’s the Christmas gift, it’s the holiday gift of the year. And all of a sudden, you find out you get the pre-approval, and you don’t have as much as you thought. That’s not a bad thing though, is it? To learn that.

0:08:17.2 JS: No, I think it’s important to learn it, right? You want to learn it upfront. And before you really get your hopes up on a lot of different things, you don’t want to be opening that Christmas present and be disappointed by it, right? So having those expectations set upfront, I think, it’s really important as you’re going into this big transaction.

0:08:36.1 LJJ: You know, as we end the year, I just want to say thank you. I want to say thank you to you and your team. Our mortgage loan officers, they work 24/7 for you as members or anyone out in the community that’s looking for a great lending opportunity. The partnership is key.

0:08:52.5 JS: It’s fun. Our people enjoy what they do. They love helping those buyers get into their dream home. So, we have that relationship. We build it from the time they either walk in our doors or apply online. And we walk that journey with them. So, our loan officers absolutely love what they do. And yeah, I’m excited for them heading into ’24.

0:09:13.8 LJJ: Well, we’re excited for you heading into 2024 too. I’d like to quick-thank Jake Esselink, our producer, for all of the time he’s had in the editing bay all year long. And I just would like to say also to all of you who have been listening, we really appreciate the fact that we are now 250+ strong in podcast. Next year, we’re going to have a little bit of fun and a lot of knowledge. And we’re going to really focus on financial education. Josh, you’ll be joining us again. Thank you. It’s always fun. We really are excited to see you next year on Money, I’m Home for the Holidays. Thanks for being with us today.

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