Since many on this site may be buying or selling a home at any given time, own investment properties, or commercial real estate I'm posting this weekly update to stay current.
The data is well researched from multiple sources concerning the real estate & mortgage market.
Thus, it is fact based and only analyzing the data/trends without regard to government policy.
As I stated previously let's keep the thread informational for those that might be in the market and leave policy discussions in "The Corral".
Current Rates -
30 Year Conventional - High 6's
15 Year Conventional - High 5's
30 Year Jumbo - Mid 6's
30 Year FHA - Low 6's
30 Year VA - Low 6's
25% of The Average American Home is Due to Regulatory Cost -
I was invited to our corporate headquarters last month to meet with some members of our executive team, and hear from the nation's 3 top producing loan officers - all whom work at Rate Mortgage - to get updates/things happening in the industry/and how to expand our market share in 2025.
When our head of Capital Markets spoke about the lack of affordable homes he mentioned that 25-30% of a home's cost is from regulatory compliance. I was shocked at that number. Later during the day I had a chance to speak with him individually and asked him what the source was for that data. He said he got it from Jamie Dimon when he met with him a few weeks before and Jamie got it from JP Morgan Housing Research.
Not that I would doubt Jamie Dimon one of the best and brightest on Wall Street, though I did some other research and it backs up the findings of JP Morgan Housing Research.
The price of a house starts with the cost of the land to the builder. Here is the regulatory cost just for the land:
Here is the full interview on the regulatory cost to build in California - it's everything that you would think it would be and more.
Me, Jamie Dimon, builders, none of us are advocating for zero regulation - that would be absurd. We want homes safely built. But likely 80% of unnecessary regulation could be eliminated. That would drastically reduce the cost of housing.
For example if a home sells for $500,000 and you can reduce the regulatory cost from 25% to 5% and eliminate 20% of the cost of a home. Now that $500,000 home only costs $400,000 and a lot more people can qualify for a $400,000 vs a $500,000. This would apply across all price ranges making homes more affordable.
78 % of Loan Officers Have Exited the Industry Over the Last Couple of Years -
From 420,000 loan officers in 2021 to just 95,000 in 2025 the mortgage industry has seen a 78% reduction in licensed loan officers.
This reduction in force is actually a good thing for borrowers. It means that all the "order takers" who got into the business just for the refinance boom have gone on to the "next thing", and what remains are the more professional in the industry. I can tell you every lender on this board falls into the second category and any & all of them have great reputations and will serve you professionally.
Odds & Ends From the Real Estate Market -
Home Builders in Dallas Throwing the Kitchen Sink at Potential Buyers
The Commercial Office Market Continues to Struggle
If You Think This Dip In the Real Estate Market is Bad - Be Glad You're Not in China
Final Thoughts -
2024 Real Estate Market was a lot like the Horns vs ASU - "Survive and Move On"
Here is my favorite "Motivational Clip" for you, after watching The Horns vs ASU and living through 2024. It will be the best 2:19 minutes of your day!
A Belated Happy New Year From "The Weekly Housing & Real Estate Market Thread"!
May you all have an Amazing 2025!
Always here to answer questions ITT or DM.
Hook 'Em & Beat Ohio State!
MH
The data is well researched from multiple sources concerning the real estate & mortgage market.
Thus, it is fact based and only analyzing the data/trends without regard to government policy.
As I stated previously let's keep the thread informational for those that might be in the market and leave policy discussions in "The Corral".
Current Rates -
30 Year Conventional - High 6's
15 Year Conventional - High 5's
30 Year Jumbo - Mid 6's
30 Year FHA - Low 6's
30 Year VA - Low 6's
25% of The Average American Home is Due to Regulatory Cost -
I was invited to our corporate headquarters last month to meet with some members of our executive team, and hear from the nation's 3 top producing loan officers - all whom work at Rate Mortgage - to get updates/things happening in the industry/and how to expand our market share in 2025.
When our head of Capital Markets spoke about the lack of affordable homes he mentioned that 25-30% of a home's cost is from regulatory compliance. I was shocked at that number. Later during the day I had a chance to speak with him individually and asked him what the source was for that data. He said he got it from Jamie Dimon when he met with him a few weeks before and Jamie got it from JP Morgan Housing Research.
Not that I would doubt Jamie Dimon one of the best and brightest on Wall Street, though I did some other research and it backs up the findings of JP Morgan Housing Research.
The price of a house starts with the cost of the land to the builder. Here is the regulatory cost just for the land:
Here is the full interview on the regulatory cost to build in California - it's everything that you would think it would be and more.
Me, Jamie Dimon, builders, none of us are advocating for zero regulation - that would be absurd. We want homes safely built. But likely 80% of unnecessary regulation could be eliminated. That would drastically reduce the cost of housing.
For example if a home sells for $500,000 and you can reduce the regulatory cost from 25% to 5% and eliminate 20% of the cost of a home. Now that $500,000 home only costs $400,000 and a lot more people can qualify for a $400,000 vs a $500,000. This would apply across all price ranges making homes more affordable.
78 % of Loan Officers Have Exited the Industry Over the Last Couple of Years -
From 420,000 loan officers in 2021 to just 95,000 in 2025 the mortgage industry has seen a 78% reduction in licensed loan officers.
This reduction in force is actually a good thing for borrowers. It means that all the "order takers" who got into the business just for the refinance boom have gone on to the "next thing", and what remains are the more professional in the industry. I can tell you every lender on this board falls into the second category and any & all of them have great reputations and will serve you professionally.
Odds & Ends From the Real Estate Market -
Home Builders in Dallas Throwing the Kitchen Sink at Potential Buyers
The Commercial Office Market Continues to Struggle
If You Think This Dip In the Real Estate Market is Bad - Be Glad You're Not in China
Final Thoughts -
2024 Real Estate Market was a lot like the Horns vs ASU - "Survive and Move On"
Here is my favorite "Motivational Clip" for you, after watching The Horns vs ASU and living through 2024. It will be the best 2:19 minutes of your day!
A Belated Happy New Year From "The Weekly Housing & Real Estate Market Thread"!
May you all have an Amazing 2025!
Always here to answer questions ITT or DM.
Hook 'Em & Beat Ohio State!
MH
Last edited:
