By Brent Ruffner | Your Valley
Rising interest rates and increasing home prices are leading to a significant dip in new residential loans, according to a local loan officer and sales manager.
A combination of interest rates and inflation have had a negative impact on new residential loans in the Valley, said Matthew Belmont, a loan officer and sales manager at Primary Residential Mortgage Inc. in Scottsdale.
On Thursday, the Associated Press reported “four big banks reported noticeable declines in their first-quarter profits Thursday, as the volatile markets and war in Ukraine caused deal-making to dry up while a slowdown in the housing market meant fewer people sought to get a new mortgage or refinance.”
A day earlier, banks that included Citigroup, Goldman Sachs, Morgan Stanley and Wells Fargo reported similar results to JPMorgan Chase, which saw a double-digit decline in profits, the story said.
Belmont said rising interest rates, largely due to inflation, have had homebuyers pull back. Higher interest rates can equate to higher monthly payments for buyers.
