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Mortgage is Dead

The mortgage industry is dead. Either that, or people haven’t come back from their Labor Day holiday yet. Or maybe it’s the fact that school is starting up again and people have other things on their mind. Either way, I know my phone isn’t ringing. And when it does, the loan scenario is nothing short of terrible.

The ironic part is that mortgage rates are lower than they’ve been for almost a year, but no homeowners seem to be biting. Perhaps it’s the overvalued communities we’ve created during the housing boom of the last five to ten years? Maybe no one can afford a home at the current values? But whatever it is, it’s apparent.

And it’s making me think twice about staying within the industry. People are jumping ship, and companies are continuing to downsize and sell themselves off. But it’s at a critical point now where even once profitable mortgage companies are struggling to turn a profit, much less stay afloat.

Sure, September and the later months tend to be historically slow months for the mortgage industry, but I sat by my phone today for a good hour without a single call. And that’s rare.

I used to pray for a day where the phone wouldn’t ring. And now, my prayer seems to have been answered. Too bad we couldn’t seem to find a nice comfortable medium.

So as it stands today, I proclaim that the mortgage industry is dead, or at least on its last gasp. The problem is simple. Nobody can afford a home.

Until things change, low interest rates simply won’t correct this market. The damage has been done thanks to real estate flipping and the resulting urban gentrification, and there is nothing we can do but wait. How long we have to wait is the big question? In the meantime. Patience.

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