Saturday, February 4, 2023
Subscribe to Guide
No Result
View All Result
Hamptons.com
  • Spotlight
  • Entertainment
  • Arts
  • Community
  • Dining
  • Recreation
  • Events
    • Events Calendar
    • Post an Event
    • Gallery
    • Main Beach Music Series
  • Real Estate
    • Real Estate Features
    • Search Real Estate
      • Open Houses
      • Search Sales
      • Search Rentals
    • Title Insurance
    • Happening In The Hamptons Podcast
    • History of the Hamptons
  • Live Cameras
    • All Live Cameras
    • Sagg Main Beach, Sagaponack
    • Live Weather
    • 39A Corner, Southampton
    • Main Beach, East Hampton Village
    • South Ferry, Shelter Island
    • Coopers Beach, Southampton Village
    • Southampton Village Main Street (South)
    • Southampton Village Main Street (North)
    • Southampton Village Main Street (Hildreths)
    • Downtown Circle, Montauk
    • Long Island Aquarium | Shark Tank
    • Long Island Aquarium | Coral Reef
    • Tiana Beach, Hampton Bays
    • Ponquogue Beach, Hampton Bays
    • Ponquogue Bridge, Hampton Bays
    • Shinnecock Fishing Dock, Hampton Bays
    • Village Main Street, Sag Harbor
    • Downtown Main Street, Sag Harbor
    • Windmill Beach, Sag Harbor
    • Foster Memorial Beach, Sag Harbor
    • Conscience Point Marina, Southampton
  • Public WiFi
    • Public WiFi Map
    • Public Wi-Fi Support
  • Spotlight
  • Entertainment
  • Arts
  • Community
  • Dining
  • Recreation
  • Events
    • Events Calendar
    • Post an Event
    • Gallery
    • Main Beach Music Series
  • Real Estate
    • Real Estate Features
    • Search Real Estate
      • Open Houses
      • Search Sales
      • Search Rentals
    • Title Insurance
    • Happening In The Hamptons Podcast
    • History of the Hamptons
  • Live Cameras
    • All Live Cameras
    • Sagg Main Beach, Sagaponack
    • Live Weather
    • 39A Corner, Southampton
    • Main Beach, East Hampton Village
    • South Ferry, Shelter Island
    • Coopers Beach, Southampton Village
    • Southampton Village Main Street (South)
    • Southampton Village Main Street (North)
    • Southampton Village Main Street (Hildreths)
    • Downtown Circle, Montauk
    • Long Island Aquarium | Shark Tank
    • Long Island Aquarium | Coral Reef
    • Tiana Beach, Hampton Bays
    • Ponquogue Beach, Hampton Bays
    • Ponquogue Bridge, Hampton Bays
    • Shinnecock Fishing Dock, Hampton Bays
    • Village Main Street, Sag Harbor
    • Downtown Main Street, Sag Harbor
    • Windmill Beach, Sag Harbor
    • Foster Memorial Beach, Sag Harbor
    • Conscience Point Marina, Southampton
  • Public WiFi
    • Public WiFi Map
    • Public Wi-Fi Support
No Result
View All Result
Hamptons.com
January 3, 2023

Interest Rates, Inflation, and Supply and Demand in the Post-Covid Hamptons Real Estate Market

John A. ViterittibyJohn A. Viteritti
in Featured, Real Estate
Home Real Estate
Patti Frank, Mortgage Banker with Guardhill in Southampton, NY

It is often said that all politics is local. That is also true of real estate markets. For perspective on how interest rates, inflation, and supply and demand are affecting the post-Covid Hamptons real estate market, I have interviewed Patti Frank of Guardhill Mortgage for the January article.

 

JAV: What are you seeing for the Hamptons real estate market as we enter into a new year?

 

PF: As we round the corner on 2022 and head into the new year, I have noticed that the current change in the Hamptons market is partly due to the economy at large and consumer sentiment.There are signs of weakening as inflation reached a 40 year high, and many economists expect that the country will enter into a recession by mid-2023. Yet running counter to this is a very strong job market. So who knows?

 

JAV: I hear from real estate brokers throughout the Hamptons that inventory is still very scarce. How do you account for that?

 

Patti Frank: It’s an oxymoron. Mortgage rates broke 7% recently, the highest since 2022, and twice what borrowers paid at the start of the pandemic. I feel that the days of record-low mortgage rates are over for the next few years, at least, but strangely, jacked-up home prices haven’t fallen in step.

 

JAV: What do you hear from real estate brokers regarding this point?

 

PF: I speak to real estate brokers daily about trends in the market, and all agree, especially with economic headwinds, the market is starting to cool. We can expect home prices to drop, but not as much as many homebuyers are hoping for.

 

JAV: What is their take on inventory?

 

PF: Inventory for sale has increased slightly, but is still below normal levels because homeowners currently have mortgages with low 3-4% interest rates and few choose to sell today. I think it’s worth noting that renters may finally see a reprieve from surging prices as that market cools.

 

JAV: What are your thoughts concerning the Federal Reserve’s future actions with respect to interest rates and their impact on the real estate market?

 

PF: With inflation, higher rates, a potential recession, and geopolitical tensions I don’t expect to see mortgage rates decline for at least another year or two. I read recently that the Mortgage Bankers Association is more optimistic, expecting rates to peak at 8% for 30-year in early 2023 and gradually come down to a range of 6% by the end of 2023.

 

JAV: What advice do you offer your clients?

 

PF: Buying a home in any market is a highly personal decision. I generally recommend they not try to time the market to predict what will happen next year, because that may not be the best strategy.

 

JAV: Have you seen any other loan products that have gained popularity recently?

 

PF: I have seen an uptick in home equity loan requests in the past three months. Clients want to have a line of credit available for future expenses such as college tuition, home renovations, and other unforeseen needs. For home purchases, many clients have found an Adjustable Rate Mortgage (ARM) works better for numerous reasons: they plan on paying the mortgage off over the next 5-10 years, they are not sure if they will keep the house more than 5-7 years, or they are willing to take the risk of locking in their rate for 5, 7, or 10 years with an outlook that rates will come back down in the future and they can refinance.

 

JAV: Is there any danger you see that could cause a repeat of the mortgage crisis of 2007/2008, much of which was caused by ARMs?

 

PF: I don’t see a parallel to 2007/2008., because the majority of the ARM products underwritten at that time were known as “Negative Amortization ARMs, whereby a borrower was given four payment options, one of which was to defer interest to the back end of the mortgage, increasing the principal owed at maturity. It appears that many of the applications for new ARMs are for longer terms, with rates that reset after 7 or 10 years. So I guess borrowers are being more careful this time. And also, unlike the days leading up to the mortgage meltdown, the ARMs offered require more documentation and higher credit scores, among other things.

 

JAV: Have you encountered situations that required nuance and creativity?

 

PF: Yes. Over the past year, I have encountered a multitude of real estate borrowers with varying degrees of difficulty obtaining financing. A client may find themself in in a foreclosure situation and need the resources of a private lender. Conventional lenders are no longer interested in funding foreclosure bailouts, especially after the crash of 2008. Or a client may have inherited valuable real estate that they cannot refinance without sufficient income. Another example is a client may want to obtain a Home Equity Line of Credit (HELOC) but their debt to income ratio does not qualify for conventional lenders. And given the current rising rate environment commensurate with rising default rates has made bridge loan products virtually obsolete. 

 

JAV: How do you think the increase in Fannie Mae and Freddi Mac  federally backed mortgages of up to $1,089,300 from $970,000 this year will affect the real estate market?

 

PF: The loan limits have increased annually. This is a bigger increase than most years. Borrowers can keep their loan amounts to $1MM or less to take advantage of better rates but I have found once the loan amount is $1MM or more borrowers tend to lean towards ARM products to keep their rate lower anyway and usually plan on paying the loan down quicker with annual bonus or commissions. It will be interesting to see how this very large increase impacts the purchase market. It might attract more borrowers who are on the sidelines waiting to see if prices will cool even further. 

Previous Post

Westhampton Free Library is Once Again a Top Library

Next Post

Southampton Animal Shelter to Host Happy Mew Year Event

Search Articles

No Result
View All Result

FOLLOW US

TRENDING ARTICLES

Hunting for Ghosts at the Southampton History Museum

Hunting for Ghosts at the Southampton History Museum

February 4, 2023
Below Deck’s Captain Sandy Talks New Book, Leadership, and The Hamptons

Below Deck’s Captain Sandy Talks New Book, Leadership, and The Hamptons

February 4, 2023
Tuesday is Jazz Night at the Sag Harbor Masonic Club

Tuesday is Jazz Night at the Sag Harbor Masonic Club

February 2, 2023
Next Post
Southampton Animal Shelter to Host Happy Mew Year Event

Southampton Animal Shelter to Host Happy Mew Year Event

  • HarborFrost Returns to Sag Harbor on February 4th

The Sag Harbor Chamber of Commerce is proud to announce, Saturday, February 4, as the date of its annual winter festival, HarborFrost. This year’s festival will include a Friday night cocktail party for Chamber members and non-members and Saturday’s events will run from 1 to 6 p.m. This popular winter event began in  2011 and continues to delight locals and visitors alike.

 Read the full article at Hamptons.com (Link in Bio)
.
.
.
.
#hamptons #community #harborfrost #sagharbor
  • Winter Workshops with The Pollock-Krasner House and Study Center

Any artist or art lover knows that inspiration is not seasonal, so it’s a good thing we can count events and activities all year at the Pollack-Krasner House and Study Center to keep your creativity flowing. They have lots of exciting opportunities to learn and explore new artistic skills, plus there is even a virtual reality app available!

Read the full article at Hamptons.com (Link in Bio)
.
.
.
#hamptons #winter #workshop #art #jacksonpollock
  • The Sea Like You’ve Never Seen with South Fork Salt

You may have seen more than the usual amount of whales this summer, but you probably did not see as many or from the same view as Tim Regan, @Southforksalt. Tim is a renowned photographer who specializes in all things nautical. More than his technical prowess—the guy is a whiz with a drone—Tim’s passion and love for Long Island’s marine life is the right lens to reveal the murky magic all around us on the East End. @southforksalt

Read the full article at Hamptons.com (Link in Bio)
.
.
.
.
#hamptons #summer #ocean #whale
  • Winter in Austria Wine Dinner at Nick & Toni’s

Nick & Toni’s is one of the most iconic restaurants in the Hamptons. Jeff Salaway and Toni Ross opened the space in East Hampton in 1988, and it immediately garnered well-deserved praise. The restaurant is rooted in farm-to-table Mediterranean cuisine, the philosophy being to source everything possible locally, and the menu is inspired by simply prepared seasonal produce with an emphasis on natural flavors. @nickandtonis

Read the full article at Hamptons.com (Link in Bio)
.
.
.
.
#hamptons #nickandtoni
  • Sixty-Something: The Dance of the Eternal Souls

The east end has multiple charms that dazzle those who pause to notice. If you are disposed to spend time at beaches or boating, you understand the variety of powerful sunrises and sunsets. I call these skies the dance of the eternal souls.

I swear at the zenith of sunrises and sunsets, I feel the presence of every soul that ever existed or ever will. The east-end sky is so big and full of naturally evolving clouds, colors, and angles that it exemplifies spiritual power. There has to be a higher hand at play. One cannot create such an endless changing canvass without forces that no mortal can truly harness or even explain.

Read the full article at Hamptons.com (Link in Bio)
.
.
.
.
.
#community #eastend #longisland #hamptons
  • 5 Places To Workout in The Hamptons

We live in a beautiful place that makes it easy to stay fit and healthy with various workout options. Whether you’re looking for a yoga, a spin, or a personal training session, the Hamptons has something for everyone. Here are five places to pay for a workout class in the Hamptons:

Read the full article at Hamptons.com (Link in Bio)
.
.
.
#hamptons #workout #gym #fitness #recreation #thehamptons
Facebook Twitter Instagram Youtube
Hamptons.com

Saunders Broadcasting Corp.

Phone: 631-405-3902
Email: [email protected]
Facebook: Facebook.com/HamptonsOnline
Twitter: @Hamptons
Instagram: @HamptonsOnline

Contact Us

Hamptons.com

  • Arts
  • Community
  • Dining
  • Entertainment
  • Featured
  • Gallery
  • History of the Hamptons
  • Kids
  • Music Videos
  • Real Estate
  • Recreation
  • Spotlight
  • Tuesdays at Main Beach Music Series

Subscribe

Get daily news updates to your inbox!

Subscribe to our mailing list to receives daily updates!

© 2021 Hamptons.com | All rights reserved
Saunders Broadcasting Corp.
Terms & Conditions | Privacy Policy | Contact Us

No Result
View All Result
  • Spotlight
  • Entertainment
  • Arts
  • Community
  • Dining
  • Recreation
  • Events
    • Events Calendar
    • Post an Event
    • Gallery
    • Main Beach Music Series
  • Real Estate
    • Real Estate Features
    • Search Real Estate
      • Open Houses
      • Search Sales
      • Search Rentals
    • Title Insurance
    • Happening In The Hamptons Podcast
    • History of the Hamptons
  • Live Cameras
    • All Live Cameras
    • Sagg Main Beach, Sagaponack
    • Live Weather
    • 39A Corner, Southampton
    • Main Beach, East Hampton Village
    • South Ferry, Shelter Island
    • Coopers Beach, Southampton Village
    • Southampton Village Main Street (South)
    • Southampton Village Main Street (North)
    • Southampton Village Main Street (Hildreths)
    • Downtown Circle, Montauk
    • Long Island Aquarium | Shark Tank
    • Long Island Aquarium | Coral Reef
    • Tiana Beach, Hampton Bays
    • Ponquogue Beach, Hampton Bays
    • Ponquogue Bridge, Hampton Bays
    • Shinnecock Fishing Dock, Hampton Bays
    • Village Main Street, Sag Harbor
    • Downtown Main Street, Sag Harbor
    • Windmill Beach, Sag Harbor
    • Foster Memorial Beach, Sag Harbor
    • Conscience Point Marina, Southampton
  • Public WiFi
    • Public WiFi Map
    • Public Wi-Fi Support

© 2021 Hamptons.com | All rights reserved
Saunders Broadcasting Corp.
Terms & Conditions | Privacy Policy | Contact Us