Low Inventory Means Borrower’s Must Renovate / Improve vs Buy Up
With inventories low, mortgage activity will increasingly focus on those purchases in the market that can be made on existing structures and ground up construction / land purchases.
With little available inventory for new buyers or those looking to upgrade their space there will be an increased demand for CASH OUT refinances so that those looking to upgrade but unable to buy will improve / renovate their current homes instead, see here for more information (Low Housing Inventory in December Influenced Decline in Home Sales, Redfin Report Shows).
This presents a fantastic opportunity to earn cash out refinance business as we enter 2022 and a rising rate environment if low available inventory persits.