30-year fixed-rate mortgages with conforming loan balances of $726,200 or less, saw rates decrease from 6.42% to 6.23% for the week ending January 18, 2023, resulting in a 28% increase in mortgage application volume, and a 34% increase in refinance demand
It is projected that by the end of 2023, mortgage rates in the country will drop by 5.25%, coming from 2022, which saw home financing costs nearly double
These rate drops present an opportunity for REZYFi to grow its customer reach, market share, and revenue but also offer an avenue for the growth of the housing finance sector
REZYFi, a growth mortgage origination and specialized financing company based in the United States is set to see a growth in the demand for its services in response to the changing financing market that has seen a drop in interest rates in the past few weeks. January 18, 2023, saw mortgage rates hit the lowest level since September 2022, and the market reacting with an increased demand for mortgages (https://ibn.fm/MPApD).
Rates decreased from 6.42% to 6.23% for the average 30-year fixed-rate mortgages with conforming loan balances of $726,200 or less. In turn, mortgage application volume grew by nearly 28%, while refinance demand increased by 34% on the week ending January 21 compared to the previous week. In addition, it is projected that as more homes are listed on the market, the rates could go even lower, resulting in a further increase in mortgage demand.
“As we enter the beginning of the spring season, lower mortgage rates and more homes on the market will help affordability for first-time homebuyers,” noted Mike Fratantoni, MBA’s senior vice president and chief economist.
As a company that offers origination, structures, and investments in first mortgage loans and alternative structured financings secured by commercial real estate properties, the recent developments are much welcome. Of note is the anticipated sustained increase in the additional demand for mortgages, particularly given that 2022 saw home financing costs nearly double. Furthermore, it is projected that by the end of the 2023 calendar year, mortgage rates in the United States will drop to 5.25%, according to Bankrate (https://ibn.fm/mLGFE). While it will not be anything like pre-pandemic lows, it would still be significant in making real estate ownership more accessible and affordable, which is something REZYFi is looking to achieve.
The growing acceptance of cannabis-derived products and the support the industry has received so far are an opportunity for REZYFi and an avenue for the growth of the finance sector. The conversation surrounding the products and the companies that deal with cannabis has helped advance policy, creating an opportunity for companies such as REZYFi, and presenting customers with options. The dropping mortgage rates reflect an industry that is responding to the times. With this comes an even more significant opportunity for REZYFi to increase its customer reach, market share, and revenue.
Already, the company is positioning itself to cater to its target market and the challenges associated with lending to companies and individuals within the cannabis space. With the anticipated launch of its high-margin cannabis division and the development of proprietary technology, REZYFi is stamping its position as a market leader. But, more importantly, it is reaping the rewards of an industry that is slowly improving in performance and proving more accommodating, albeit slowly, to stakeholders in the cannabis space.
For more information, visit the company’s website at www.REZYFi.com.
NOTE TO INVESTORS: The latest news and updates relating to REZYFi are available in the company’s newsroom at https://ibn.fm/REZY