Neil Anders of Trusted Rate on His Predictions for the Future of the Mortgage Industry

One of the primary components of the American Dream is the concept of purchasing and owning a home. Thus, the mortgage market has been a mainstay in American life for generations, despite its ever-changing nature. Millions of Americans are on the prowl for the best-possible mortgage rates, hoping to clinch the most savings that they can.

One of the mortgage industry experts that is helping Americans secure the best mortgage rates while speaking to the future of the industry is certified mortgage advisor Neil Anders, Vice President of Sales at Trusted Rate. Anders knew he wanted to get involved in the business from a young age, earning his first college degree at just 17 years old. This enabled Anders to enter the mortgage industry at a young age, so he now has an extensive amount of experience and knowledge thanks to his more than 20-year career. We got to know him and his thoughts on the industry a little better.

Q: Do you believe home prices will continue to rise? Why?

A: Because of the ongoing rise in interest rates, I believe home prices will continue to rise in 2022. With higher borrowing costs, homeowners are more likely to take out larger mortgages and stay in their homes for extended periods, resulting in higher property values.

Also, there is a housing shortage due to a lack of supply and demand. Homeownership is at an all-time low, and new construction has significantly slowed. As a result, fewer houses are entering the market, which means those needing a home compete for fewer properties.

Furthermore, wages and interest rates have been rising in recent years. People can now afford more expensive homes than they could previously due to rising incomes and the ability to take out larger mortgages.

Q: Do you believe mortgage rates will continue to rise? Why?

A: Yes, I think mortgage rates will keep rising. Although government intervention to lower interest rates has assisted in their stabilization, I believe that we have reached a stage when the economy requires additional stimulus, and the Federal Reserve will be compelled to raise interest rates once more. But this increase can also lead to a rise in mortgage rates.

The good news is that some experts think these increases might not be significant enough to impact homeownership substantially. Even if they were, there would still be other options like refinancing a loan or asking for help from friends or family who might be able to help with payments until things settle down again.

Q: Do you believe the residential rental market will continue to rise? Why?

A: Because of the growing population in urban areas and the accompanying need for housing, I believe that the residential rental market will continue to experience growth in the coming years. Because of the rising population in cities, there is an increased demand for rental housing. People have less money to spend on housing as a result of the increasing cost of living, which is also rising. They have determined that renting is the best option because it is cheaper and more convenient than purchasing a house. One reason for the rise in renters is millennials putting off getting married and having kids. Another reason is that divorce and death are making more single-person households. Consequently, there has been an increase in demand for housing alternatives that offer greater flexibility than homeownership. The decline in the number of people purchasing homes is one factor driving up demand for rental housing.

Q: Will the retail property market thrive or struggle over the next year? Why?

A: For the past few years, the retail real estate market has been in a declining trend. Although it is difficult to predict what the market’s future will hold, there are some indications that it may be starting to stabilize and possibly grow once more.

However, there is still a ton of room for growth in this industry if you know where to look. There have also been numerous reports about how much competition there is right now between retailers because so many businesses are struggling financially after years of declining sales overall due to increased consumer spending on digital goods rather than physical products like clothing or electronics at their local mall or shopping center.

Q: How will work from home (and hybrid models) affect the market for office space in the next year? How will this intersect with the residential markets?

A: The market for office space is now shifting. Employees are using the work-from-home and hybrid models more frequently, meaning they spend less time in their workplaces than they once did. The need for office space is probably going to decrease.

Smaller places are now increasingly in demand as a result of this. Employees who don’t use their workstations all day don’t need as much space. Landlords have begun renting out smaller rooms and apartments to accommodate this tendency.

Flexible leases are more and more popular. Landlords are extending shorter lease terms to cater to employees who wish to work from home but may only need an office for a few days a week or a few days per month.

Due to the virtual nature of work, it is now possible for businesses to rent out space without really occupying it themselves. Instead, they can use conference rooms and other amenities whenever needed without incurring additional costs for rent or utilities. By renting only when necessary rather than paying for something that can sit empty for weeks at a time, they can save money (or even months).

Q: What is the most important factor real estate investors are taking into account when choosing a new market right now?

A: The local rules and regulations are the most significant consideration for real estate investors looking to expand into a new market. The laws and ordinances that govern the region can have a substantial bearing on the amount of profit that can be extracted from an investment. If there are an excessive number of rules that make it difficult for you to make money, then it is possible that investing in that location is not a wise decision for you.

Q: What do you believe is the most important real estate trend right now?

A: There was once a situation where my mom had to leave the house she was renting. At the time, the apartment owner was going through a difficult financial period, so they had no alternative but to sell the house. After my dad passed away, my mother was left in that apartment by herself and continued to live there. I do not want my mom to have to go through any more pain. I stayed in contact with the owner’s children and ultimately purchased the condo for my mother. I took her by surprise and presented her with a copy of the deed. I was utterly overcome with emotion when I saw my mom crying tears of shock and excitement. Because of this, I think that the most significant trend in real estate is that more and more people realize that purchasing a home is not only a financial commitment but also an emotional one. This is the reason why I consider this to be the case. They realize that purchasing a home is more than just a decision regarding their finances; rather, it represents an emotional commitment to the neighborhood in which they live and the location of their home. Because of this, real estate investors need to consider how their investments will affect them personally and how those investments will impact their surrounding community.

As the real estate market continues to evolve, Anders and his team at Trusted Rate will remain committed to ensuring each customer is prepared for every twist and turn.

McClatchy newsroom and editorial staff were not involved in the creation of this content.