- Real estate market watchers have been encouraged by recent trends in inflationary policy and lending policy analysis
- The mid-December Consumer Price Index report and the subsequent Federal Reserve funds rate decision fell in line with expectations that inflation may have passed its peak and is beginning to decline
- Real estate lenders expect mortgage rates to trend lower as a result of the policy news
- Miami-based REZYFi Inc., a mortgage lender working with traditional loans and non-traditional market sectors such as the cannabis industry, has been preparing to meet a very fast-growing residential mortgage origination opportunity
- REZYFi is working toward an IPO, having built a network of independent brokers and proprietary technology to service home owners and corporate clients with proprietary automated/machine learning technology
Housing market watchers are celebrating the Federal Reserve’s announcement Dec. 14 that it was going to raise the federal funds rate for the seventh time this year to curb inflation, recognizing that the announcement was in line with predictions that cooling inflation trends could lead to the start of a trend by policymakers to lower the amount of rate increases and thereby begin lowering mortgage rates.
After several 75 base points increases this year, December’s 50 base points decision and the companion reports of inflation-limiting successes in the Consumer Price Index (“CPI”) (https://ibn.fm/Wd4Ma) have led investors to speculate that central bank policymakers would pursue a less aggressive policy path in 2023. As a result, the Mortgage Bankers Association (“MBA”) is predicting that 30-year fixed mortgage rates expected to end this year at 6.7 percent will drop to 5.2 percent next year, according to a HousingWire report (https://ibn.fm/8fur7).
Overall mortgage application volume rose 3.2 percent during the week before the coupling of the CPI report and the Fed’s rate announcement, with applications to buy a new home rising 4 percent, and the potential for a positive rate trend is driving hopes that further housing market gains will take place next year.
“The ongoing moderation in home-price growth, along with further declines in mortgage rates, may encourage more buyers to return to the market in the coming months,” Joel Kan, an MBA economist, stated (https://ibn.fm/zVq9r).
Similar reports of potentially passing peak inflation in Europe cautiously bolster the market expectations on a global level (https://ibn.fm/sh6PS).
Real estate-oriented mortgage loan origination company REZYFi has spent the past five years building its strategy to meet a very fast-growing residential mortgage origination opportunity, further encouraged by the early pandemic home sales boom and the now-developing optimism for future market improvements.
REZYFi has developed an extensive network of independent mortgage-related brokers and licensed loan officers while investing heavily in proprietary automated/machine learning technology to shorten loan processing timeframes and reduce inefficiencies related to loan processing, underwriting and servicing.
The company also is focusing on non-traditional lending markets such as licensed and permitted cannabis companies, as well as owners of real estate who lease to cannabis companies.
REZYFi is building toward a planned public IPO launch for its operation, and with its 100 percent-owned subsidiaries REZYFi Lending and ResMac Inc. has established licensing in 36 states with plans to expand across the entire United States.
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
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