Why the latest Iran chaos likely won’t derail the US housing market
“I do think it will put more people on the sidelines,” he said. “But to be frank, buying a home propels your finances in future years. It’s like the hidden 401(k). If you have the opportunity to own your own home, there’s really not a bad reason to do it unless you’re looking to leave in a year or two.”
Rising home values and declining savings rates, he said, are reasons to act sooner rather than later. “People buy their first home, build equity, sell it, and move on to something better,” he said. “That’s been the whole story for my 25-year career, and it’s worked terrifically.”
Rate fears ‘not as prominent’ despite fresh uncertainty
Iliopoulos also said the fear of sharply higher rates, a persistent worry earlier in the conflict, didn’t seem as prominent in the current market as it was in the spring.
“I don’t find too many people concerned about interest rates as much as I thought they’d be,” he said. “If we were getting closer to 7%, I’m sure there’d be more of an uproar. But I don’t really see too many people complaining – and I have a lot of investor clients that deliberately do DSCR or non-QM products and are OK with a significantly higher rate.”
