SRP Lending, a private lender for home construction, is gearing up for a significant shift in the housing market as mortgage rates are expected to fall below 6 percent by the end of 2024. This forecast, detailed in the January 2024 commentary from Fannie Mae’s Economic and Strategic Research (ESR) Group, predicts a gradual return to a more balanced housing market, presenting new opportunities for both home builders and buyers.
The ESR Group outlook anticipates a boost in refinance volumes and a “thaw” in the existing home sales market, currently affected by the “lock-in effect.” With an anticipated annualized pace of existing home sales increasing to 4.5 million units by Q4 2024, the market is poised for recovery, albeit slow, as affordability remains a crucial issue.
Geoffrey Deckelbaum, Principal at SRP Lending, comments on the impact of these changes, “The drop in mortgage rates to below 6% is going to activate the market. For homebuilders, this signals an opportune moment to ramp up new construction as demand will rise. SRP Lending is ready to support this growth with our custom financing solutions.”
Despite the optimistic forecast, challenges such as the ongoing home supply shortage and affordability constraints remain.
“In this fluctuating market, our role at SRP Lending becomes even more crucial,” adds Deckelbaum. “We are committed to providing the necessary support to our clients, helping them navigate these uncertain times and capitalize on emerging opportunities.”
With expertise in the private lending sector, SRP Lending is optimally positioned to assist homebuilders and buyers in adapting to these market shifts and leveraging the potential benefits of the evolving economic landscape.
Builders interested in expediting their project financing are encouraged to contact SRP Lending for tailored solutions. To qualify for SRP Lending’s private money residential loans, borrowers need sufficient equity, enough cash flow for monthly payments and a sound exit strategy.
For more information about SRP Lending’s services, please visit www.SRPlending.com.
About SRP Lending:
SRP Lending is a leading private money lender providing quick, flexible, and straightforward loan options for builders and contractors. With a customer-centric approach, SRP Lending prioritizes efficiency, flexibility, and customer control over the lending process, offering an effective alternative to traditional bank financing.
For more information, contact SRP Lending at 404-858-1085 or visit www.SRPlending.com.