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In times of uncertainty, like the current contraction in the housing market, people offer those who’ve tried past crises (e.g. the Great Depression of 2008) a sobering analysis of how more and more people are navigating the turbulent seas with their eyes on it.
So they turn to Shashank Shekhar (pictured), who founded the company in 2008, during the worst year for financial markets.
Today, his company, InstaMortgage, is one of the fastest-growing mortgage companies in the United States and the fastest-growing private equity firm in Silicon Valley.
In 2017 and 2021, InstaMortgage (aka Arcus Lending) was named one of the 500 fastest-growing private companies in the United States.
Shekhar has been named 2022 Entrepreneur of the Year and Stevie Award Winner. Adding pressure to the sticky situation is that the news cycle impacts the market on an almost daily basis.
There is a bull market with gains and a bear market with losses. To hear Shekhar say this, the market is behaving like a buffalo – scrambling for cover at the slightest mention of inflation.
“The market is almost moving with the news cycle that day,” he said. “Anything inflation related (the news that inflation could be higher) tends to raise mortgage rates, and news that inflation has declined or gas has fallen tends to lower mortgage rates. So this is the daily cycle in which we live.
More broadly, rates have not changed significantly over the past four months. I expect rates to stay in this range for the next 6-8 months. If inflation eases a bit, at some point we will have to make concessions.
But don’t expect a fast turnaround. “Controlling inflation has always been a challenge for the Fed,” Shekhar said. “Every time inflation rose, it took months, sometimes years, to bring it down.”
Given his extensive experience, Shekhar has become an influential figure in the industry.
He hosts a podcast called Shashank Redemption, where he talks to various guests about entrepreneurship, technology, and life skills.
He is also an Amazon.com bestselling author with critically acclaimed books: First Time Home Buying 101, Real Estate Unleashed, and the most recent # 1 bestseller. 1 My First Home.
As if that weren’t enough, his blog (MortgageBlog.com) was named one of the 30 best mortgage blogs in the world by Feedspot.
Shashank also worked for Inc. and Forbes and other publications and is frequently cited in the national media for his mortgage experience.
He is an official member of the Forbes Financial Board and a member of the Bankrate Editorial Board. And in September 2020, Shashank led his team to create Rachel, the world’s first digital human in the mortgage industry — Alexa or Siri in the industry, if you will.
But back to his expectations. Conclusion: Don’t expect interest rates to drop to historical lows before inflation kicks in. “I don’t think fixed mortgage rates will drop below 3% anytime soon,” Sugar said.
Can you cut another half percent? Can we get below 5% which we haven’t seen in the last seven or eight months? It is possible to get there, maybe in the middle of next year.
There could be weeks in between. We might get very weak hypertrophy for a few months. And the
Hearing Shekhar’s thoughts quickly make those who think it’s a coincidence suspicious of the idea.
In June and July everyone seemed to be buying their own house, everyone lowered prices and suddenly it was August.
Maybe it’s because the school year has started again. Same as in June and July. About 6,000 homes are for sale and are expected to close this year.
This is still very low compared to June and July. About 3,000 to 4,000 are slow. Houses are more likely to experience soft landings than crashes, as many people think.”
He mentioned a client who had received 28 offers for a house. “So it’s not all grim and disastrous in housing,” Shekhar said. “Prices have fallen”
Reference Source: MPA
