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Cutting Through the Noise: Where You Get Your Advice From Matters

In today’s fast-paced world, it’s easier than ever to be bombarded with information from so-called “experts.” Unfortunately, many of these professionals offer little in the way of real insight. With the rise of social media and other broadcasting platforms, consumers are constantly exposed to opinions and thoughts, many of which come from professionals who should, by all accounts, know what they’re talking about – but too often, they don’t. As everyone is now equipped with megaphones, some larger than others, for no good reasons – it’s become increasingly difficult for consumers to know who to trust. This is especially troubling in sectors like real estate and finance, where bad advice can have serious consequences.

I’m genuinely impressed by consumers who put in the effort to research before making major decisions. It’s great to see people trying to educate themselves on market conditions before jumping into a real estate transaction or making financial commitments. But at the same time, I’m concerned about where they get their information. With so many voices in the mix, how do you separate the signal from the noise? The problem is exacerbated when professionals, whose job it is to provide sound guidance, get it wrong.

I had a personal experience recently that really drove this point home. Last week, the day before the Federal Reserve was set to hold its Federal Open Market Committee (FOMC) meeting, I posted a poll on my social media network. I predicted the Fed would lower rates by 50 basis points (0.50%). My survey then asked respondents to choose what they thought would happen, giving them options of 25 basis points (0.25%), 75 basis points (0.75%), or no cut at all.

Most respondents predicted a 25-basis-point cut, which was a reasonable guess. But what shocked me was that two individuals – one a highly regarded real estate professional and the other a seasoned financial expert – predicted no rate cut at all. These are people whom others rely on for their expertise, yet their assumptions were completely out of touch with the market. I couldn’t help but wonder how many clients they had advised with this faulty forecast and what kind of decision-making it might have influenced.

In times like these, accurate information is more critical than ever, particularly given the tumultuous market. The dream of homeownership feels more elusive than ever for many families as personal debt hovers near decade highs, making it difficult for buyers to qualify for loans or afford higher monthly payments. The average American household is struggling with higher costs for everything from groceries to utilities, leaving them with less disposable income to save for a down payment or invest in home improvements.

The real estate market is also seeing low inventory, with many homeowners who refinanced during the pandemic at historically low rates reluctant to sell, knowing they’d be trading a low mortgage rate for a much higher one. This has driven up home prices, compounding the affordability crisis for buyers. For those who do manage to secure a mortgage, the financial strain of maintaining a home in this environment – where wages aren’t keeping pace with inflation – can be overwhelming.

In this kind of market, it’s essential to work with professionals who deeply understand the bigger picture. Real estate is not just about price trends; it’s about how larger economic forces, from interest rates to inflation, affect household budgets and long-term financial well-being. Yet, when professionals offer misguided advice – like predicting no rate cuts when the market clearly signaled otherwise – it leaves people vulnerable to making decisions that can have lasting financial consequences.

For consumers, the takeaway is simple: do your research, but be careful about where your information comes from. Just because someone has a lot of social media followers or a fancy title doesn’t mean their advice is sound. It’s essential to seek out knowledgeable professionals who can back up their insights with data and a full understanding of the current economic landscape. Find experts whose advice is rooted in facts and who are willing to adjust their views as the market evolves.

Shmuel Shayowitz (NMLS#19871) is President and Chief Lending Officer at Approved Funding, a privately held local mortgage banker and direct lender. Approved Funding is a mortgage company offering competitive interest rates as well as specialty niche programs on all types of Residential and Commercial properties. Shmuel has over 20 years of industry experience, including licenses and certifications as a certified mortgage underwriter, residential review appraiser, licensed real estate agent, and direct FHA specialized underwriter. He can be reached via email at [email protected].