The U.S. home market does have some hope, if you know where to look, despite the constant headlines about high mortgage rates, a lack of inventory, and economic instability. Opportunity has not vanished, but it isn't as plentiful as many would want, according to Mat Ishbia, Chairman and CEO of United Wholesale Mortgage (UWM).
Ishbia recently discussed his thoughts on what goes on behind the scenes in the real estate market and why investors, buyers, and sellers should all lower their expectations while being persistent during an interview on CNBC's Closing Bell Overtime.
A Complex Market, But Not a Closed One
Ishbia stressed in the interview that "there is opportunity to buy homes in the U.S." "Just not to the extent that we would like." His remarks capture a reality that many people in the real estate industry already experience: while the market isn't collapsing, it's also not the free-for-all it once was.
In many areas, inventory is still historically low, especially in the affordable housing market. Ishbia claims that homeowners are reluctant to sell and switch to today's 7% interest rates since they locked in record-low rates during the pandemic. This is making it more difficult for first-time purchasers and limiting the number of fresh postings.
Deals are still available, he emphasized, particularly for individuals who are prepared to exercise patience and collaborate with regional specialists. Companies like Sell House Fast Indiana, for example, are helping distressed or motivated sellers quickly offload properties, freeing up inventory for interested purchasers. This is one example of how house buyers and sellers in Indiana are finding innovative solutions.
The Rate Lock Effect: A Major Bottleneck
The "rate lock effect" is largely to blame for today's inventory problems. Ishbia clarified that millions of homeowners are reluctant to take a step that would force them into a 6-7% mortgage on a new property because they are now sitting on mortgage rates of 2-3%.
The housing stock has a low turnover rate as a result. Even while buyers are eager, there aren't enough houses available, especially in well-liked mid-sized regions like Milwaukee where employment growth is steady and living expenses are still affordable. For this reason, local buyers are turning to services like Sell House Fast Milwaukee, which links sellers in need of speedy, hassle-free transactions with cash-ready investors.
These local alternatives demonstrate how, in the current high-rate environment, the conventional housing model is being rethought.
Mortgage Rates: Still the Elephant in the Room
Despite the Federal Reserve's hints of possible rate reduction later this year, Ishbia isn't placing a lot of money on significant changes to the 30-year fixed mortgage rate, which has been at 7% for the majority of 2024. "We're not going back to 3% mortgages, even if rates go down a little," he said. "This new normal requires buyers to adjust."
More people are using their creativity rather than waiting for rate cuts that might never happen. To completely sidestep the typical obstacles, purchasers in states like North and South Carolina are adopting alternative financing options and relying on property buying businesses like Sell My House Fast in Carolina. These businesses can act quickly—often within days—in response to inherited property, divorce settlements, or financial difficulties, opening up new chances in a market that would otherwise be stagnant.
Investor Activity Still Strong in Select Markets
Real estate investors haven't vanished, despite what many people think; they've simply become more selective. As Mat Ishbia noted, astute investors continue to spot cheap real estate, particularly in southern cities where population growth is still outpacing supply.
To get around drawn-out listing periods, sellers in Charlotte, for example, have begun turning to services like Sell Your House Fast in Charlotte. In addition to providing fair market value for homes that could otherwise go unsold because of minor repairs or outdated features, these quick cash solutions are also aiding in the more efficient circulation of inventory.
Ishbia thinks that the next phase of real estate will be characterized by innovations like this buyer-seller flexibility.
A Shift in Strategy, Not a Shutdown
So what’s the takeaway for the average American buyer or seller?
Ishbia asserts that a change in approach, rather than a complete withdrawal, is necessary for success in this market. "Those who adapt are the ones who are succeeding," he stated. "You may need to think about a different neighborhood, a smaller house, or a flexible financing alternative. However, the chance still exists.
In order to close the affordability gap, he added, purchasers might occasionally engage with lenders who provide adjustable-rate mortgages or interim rate buydowns. Ishbia continued, "The plan is to buy the house now and refinance when interest rates drop later."
For the time being, homeowners continue to have the advantage.
Homeownership is still one of the most effective means of accumulating wealth in the United States, notwithstanding the difficulties facing the market. Ishbia emphasized that although prices aren't dropping sharply, sellers frequently still have leverage.
This is particularly true for homeowners who are open to working with purchasers who do not require conventional financing and who are realistic about the state of their house. For example, even in regions of the Midwest and Southeast where MLS listings are declining, direct-sale businesses are contributing to the preservation of market liquidity.
Businesses like the ones listed above are making sure that homes don't lie idle as rates change by expediting the sale process. When institutional lenders are tightening their belts, this keeps the market moving and helps motivated sellers.
Looking Ahead: Cautious Optimism
The housing market continues to be a mixed bag as the second half of 2025 draws near. Inflation is still a worry, affordability is still a significant problem across the country, and the Fed has indicated a more gradual approach to interest rate reductions. People are still purchasing homes, though, in spite of everything.
What does Mat Ishbia think? "The ideal moment doesn't exist, so don't wait for it. Go for the house if you can afford it and it's the appropriate fit for you. This investment will last for a long time.
And he is not the only one who thinks that way. With the help of regional specialists and innovative solutions that aid in navigating the high-rate realities, astute purchasers and sellers are collaborating in novel ways around the nation.
Final Thoughts
As Mat Ishbia demonstrates, genuine opportunity is found in taking action rather than hesitating, despite the temptation to watch and wait for rates to drop or for prices to plummet. Even if there aren't many simple wins in the market today, those that are resourceful, adaptable, and prepared to try new things will succeed.
Now is the moment to work with reputable local businesses that are aware of your particular difficulties and can help you proceed with confidence, even in a market that isn't perfect, whether you're a buyer trying to outbid the competition or a homeowner trying to sell quickly.
Because the optimum time to take action in real estate, as in life, is usually when you're ready, not when everything is ideal.
