“Disease of Uncertainty” not the “Symptom of Fear” Attacking the “Disease of Uncertainty” not the “Symptom of  Fear” 7/26/2016

FEAR

Thinking about the housing crisis that started in 2008, when many people and families defaulted on their mortgages and lost their homes, I think the housing crisis is pretty much over https://www.macfound.org/media/files/E-How_Housing_Matters_National_Full_Report.pdf MacArthur Foundation

Uncertainty…

Where Is the Opportunity?

trust

Do they know what is happening? Do they know why it is happening? Three Questions Do they know what is happening? Do they know why it is happening? Do they know how to communicate it?

Today, we will… 1. Prove the housing market is primed for tremendous growth over the next 18 months 2. Debunk the myth that we are heading for a new housing bubble 3. Dispel the concerns potential buyers have regarding today’s mortgage environment

Today, we will… 1. Prove the housing market is primed for tremendous growth over the next 18 months 2. Debunk the myth that we are heading for a new housing bubble 3. Dispel the concerns potential buyers have regarding today’s mortgage environment

their highest annual pace since February 2007.” “With last month's gain, sales are now up 4.5% from May 2015 and are at their highest annual pace since February 2007.” http://www.realtor.org/news-releases/2016/06/existing-home-sales-grow-18-percent-in-may-highest-pace-in-over-nine-years - Lawrence Yun NAR’s Chief Economist

“Now in its seventh year, the US economic recovery shows signs of slowing in the face of a strong dollar, a weakening global economy, and low energy prices. But as household growth continues to gain momentum, the housing sector should be an engine of growth.” http://www.jchs.harvard.edu/sites/jchs.harvard.edu/files/jchs_2016_state_of_the_nations_housing_lowres.pdf - Joint Center For Housing Studies of Harvard University

“Demand for homes has been especially strong as more Americans find work, wages edge higher and mortgage rates remain historically low. We still have some ground to make up but housing remains a bright spot in the economy.” http://www.freddiemac.com/blog/research_and_analysis/20160623_ahead_in_may.html - Freddie Mac

Homeownership is… an achievement to be proud of a dream come true https://www08.wellsfargomedia.com/assets/pdf/about/press/2016/HomeownershipSurvey06142016.pdf a dream come true Ipsos

Buying a home is an excellent long-term investment because it is likely to increase in value over time and it is one of the best ways for people to build wealth and assets: https://www.macfound.org/media/files/E-How_Housing_Matters_National_Full_Report.pdf MacArthur Foundation

Average Effective Rent in the U.S. WSJ, AxioMetrics

% of Renters Who Prefer to Own Increasing https://www.newyorkfed.org/newsevents/news/research/2016/an160602 Federal Reserve Bank of New York

% of Renters Who Plan to Buy Increasing https://www.newyorkfed.org/newsevents/news/research/2016/an160602 Federal Reserve Bank of New York

“The more sustainable housing markets should allow for positive feedback loops in local economies, with strengthening job and income gains for residential real estate agents, mortgage bankers and home improvement workers.” http://www.dsnews.com/news/06-28-2016/housing-market-weathering-ongoing-headwinds - David Berson, Nationwide's SVP and chief economist

Today, we will… 1. Prove the housing market is primed for tremendous growth over the next 18 months 2. Debunk the myth that we are heading for a new housing bubble 3. Dispel the concerns potential buyers have regarding today’s mortgage environment

Existing Home Sales 2016 2015 2014

HOUSING SUPPLY Year-Over-Year Last 12 Months June www.realtor.org NAR 7/2016

Buyer Traffic By State NAR http://www.realtor.org/reports/realtors-confidence-index NAR

Seller Traffic By State NAR http://www.realtor.org/reports/realtors-confidence-index NAR

The two reasons prices are continuing to appreciate Supply of Homes http://www.realtor.com/news/trends/homes-sales-limited-by-low-inventory/ realtor.com

Forecasted Year-Over-Year % Change in Price by State http://www.corelogic.com/about-us/researchtrends/corelogic-home-price-insights.aspx# CoreLogic

Home Price A nationwide panel of over one hundred economists, real estate experts and investment & market strategists. https://www.pulsenomics.com/Q2_2016_HPE_Survey.php

PROJECTED Mean Percentage Appreciation https://www.pulsenomics.com/Q2_2016_HPE_Survey.php Home Price Expectation Survey 2016 2Q

Cumulative House Appreciation by 2020 https://www.pulsenomics.com/Q2_2016_HPE_Survey.php All Projections Bulls Bears Home Price Expectation Survey 2016 2Q

Today, we will… 1. Prove the housing market is primed for tremendous growth over the next 18 months 2. Debunk the myth that we are heading for a new housing bubble 3. Dispel the concerns potential buyers have regarding today’s mortgage environment

How Many Americans “Don’t Know”? 40% 54% 59% ???????????? Fannie Mae

Percentage who believe a 20% down payment is required to purchase a home https://www08.wellsfargomedia.com/assets/pdf/about/press/2016/HomeownershipSurvey06142016.pdf Ipsos

3% 620 45% Fannie Mae Requirements * Minimum % Down Payment Required Maximum Back-End DTI Ratio 3% Minimum Credit Score Required 620 45% *up to 50% with compensating factors *

“The high median credit scores are due to many millennials believing they won’t qualify with the score they have - and are waiting to apply for a mortgage until they have the score they think they need.” NAREE 50th Annual Real Estate Journalism Conference - Jonas Moe Ellie Mae Senior VP

“Consumers are cautious more than they have been in the past and thus the self-sidelining of cautious/discouraged consumers makes it appear as if credit is tightening. More consumer education such as counseling and financial literacy programs could be as or more successful in raising origination levels than introducing new lending products with lower credit standards.” http://www.corelogic.com/about-us/researchtrends/the-marketpulse-report.aspx#. CoreLogic MarketPulse Report

30 Year Fixed Rate Mortgages from Freddie Mac http://www.freddiemac.com/pmms Freddie Mac 7/2016

Mortgage Rate Projections Quarter Fannie Mae Freddie Mac MBA NAR Average of All Four 2016 4Q 3.7 4.1 4.00 2017 1Q 3.6 4.2 4.3 4.08 2017 2Q 3.8 4.4 4.5 4.28 2017 3Q 4.6 4.7 N/A 4.37 http://www.fanniemae.com/resources/file/research/emma/pdf/Housing_Forecast_062016.pdf http://www.freddiemac.com/finance/pdf/201606-Outlook-06%2028%2016.pdf https://www.mba.org/Documents/Research/Mtg%20Fin%20Forecast%20Jun%202016.pdf http://www.realtor.org/sites/default/files/reports/2016/embargoes/forecast-06-2016-us-economic-outlook-06-29-2016.pdf 7/2016

Mortgage Rates 30 Year Fixed Rate - Actual - Projected http://www.freddiemac.com/finance/pdf/201606-Outlook-06%2028%2016.pdf Freddie Mac, Fannie Mae, MBA, NAR

This Thursday, July 28th at 2PM EST You can register at: http://bit.ly/BBer728 BRIDGE Builders

Made high school varsity as an 8th grader Voted team captain as a freshman Won a Youth Basketball of America National Championship Won an AAU National Championship All State Player as a junior and senior Played Division I college basketball Went on to play basketball in Italy When he returns to that gym in the city, he is known as ‘snowflake’ Won Coach of the Year honors for leading his High School alma mater’s women’s basketball team to a county championship Coached women’s basketball at the Division III collegiate level

Coach Steven Harney

1. Attacking the “Disease of Uncertainty” not the “Symptom of Fear”   2.       Short Description: Uncertainty creates fear. Fear creates paralysis. The uncertainty in the housing market right now is causing sellers to be afraid to put their homes on the market and causing Millennials to fear jumping off the fence into homeownership. Most agents mistakenly try to treat the symptom of fear. Great mortgage professionals know fear won’t go away until they kill the uncertainty that creates it. 3.       3 Big Takeaways: In a rapid fire session, Steve will… ·         Prove the housing market is primed for tremendous growth over the next 18 months. ·         Debunk the myth that we are heading for a new housing bubble. ·         Dispel the concerns potential buyers have regarding today’s mortgage environment.