Is it a surprise to anyone that millions of renters could afford to buy a home with their mortgage payment not exceeding 30 percent of their income? Despite 39 percent of U.S. families renting in 2022, nearly 8 million qualified as “income mortgage-ready,” per Zillow, meaning they could likely handle a mortgage payment for a typical home in their area. Some portion of those want to rent, but other many potential homeowners may simply be unaware of their financial ability to purchase a home. It’s certainly up to lenders to tell them. Are they all waiting for lower rates, the term “lower” being subjective? The U.S. Federal Reserve is widely anticipated to hold the federal funds rate steady tomorrow, but everyone is expecting some kind of strong indication that it will begin easing policy in September. “Rob, are you hearing much about adjustable-rate loan production picking up?” Nope. Most think that rates are going to drop eventually, and it seems that borrowers are hesitant to have the same rate for 3 or 5 or 7 years. And capital markets staff aren’t in a rush to go through the trouble of setting up a new investor to do 3 loans a year with. (Today’s podcast is found here and this week’s is sponsored by Optimal Blue. Optimal Blue bridges the primary and secondary mortgage markets to deliver the industry’s only end-to-end capital markets platform, helping lenders maximize profitability and operate efficiently so they can help American borrowers achieve the dream of homeownership. Hear an interview with TD Bank’s Scott Lindner on optimism amongst home buyers despite market challenges.)