Shmuel Shayowitz (NMLS#19871) is President and Chief Lending Officer at Approved Funding, a privately held local mortgage banker and direct lender. Shmuel has over two decades of industry experience, including licenses and certifications as a certified mortgage underwriter, residential review appraiser, licensed real estate agent, and direct FHA specialized underwriter. Shmuel provides a uniquely holistic approach to comprehensive real estate and financial matters that goes well beyond any single transaction. Shmuel is an award-winning financier recognized for maximizing the short-term and long-term objectives of his client. As a contributing writer to many local and regional newspapers and publications, his insights have been featured in the media for many topics, including mortgages, personal finance, appraisals, and real estate trends.

Supply and Demand

By Shmuel Shayowitz

Last week, I went to my local bank and asked them for a few rolls of quarters. They didn’t have any, so they told me to come back again. They told me they still hadn’t received their new supply a few days later. I went back this morning asking why it’s so difficult to get some quarters, and the branch manager said, “Shmuel, where have you been?! This has been going on for months!”

Apparently, banks have a significant shortage to get the necessary coins for customers. The manager was nice enough to give me one roll for $10. As I was paying, I jokingly said, “Does this mean these quarters are worth more now?! Maybe I can sell them outside for more money?” They laughed, perhaps to humor me, but it got me thinking about the whole concept of supply and demand.

We are in a very unique transitioning market now that mortgage rates are rising. Typically, when interest rates go up, home prices begin to soften and go down. From conversations with many buyers, sellers, and real estate professionals – they are all waiting for that to occur. You should hear their voice of disgust when I tell them that I don’t see that happening this time around.

Everyone knows there’s a shortage of real estate inventory – i.e., homes. It was an issue well before Covid and will likely continue to be a challenge in the near future. “Supply and Demand” is fueling a very robust housing market and has caused home prices to appreciate every year over the past decade – including record-breaking prices over the past year-plus.

There aren’t too many “real assets” that consistently appreciate in value and help someone build genuine wealth. I feel bad when I speak to some clients who were complaining about prices and mortgage rates six months ago – only to be paying more for the home with a higher payment today. Of course, I never say, “I told you so,” but it’s what I do say to every client who asks my opinion. The best time to buy a house was a decade ago. The next best time is today.

I had a client who bought a home a few months ago, and given his circumstances, I encouraged him to put down less than twenty percent. He was hesitant, as are many people, but I supported why I thought it was a prudent decision for him. I also explained that I believe home prices would appreciate further and that I will be able to remove the Private Mortgage Insurance (“PMI”) within the year. Needless to say, it didn’t even take five months to deliver on my assurances.

Interestingly, with the soaring inflation, my recently purchased roll of quarters are possibly worth less than the ten dollars I paid for them just a few days ago. Ponder that! Allow me the opportunity to guide you through this changing environment. The financial and investment decisions you make now will have a long-lasting impact on your wealth accumulation and net worth for years to come. I will be holding a special webinar for home buyers and real estate professionals to help successfully navigate through these unique times.


To learn more about Shmuel Shayowitz, click here or complete this form to be connected with Shmuel:

Share →
Mortgage Programs
Search our site for the latest loan types and programs available from Approved Funding.
Learning Centers
Access our mortgage, real estate and market learning centers filled with a wealth of information.
Rate Quote
Get a quick no-obligation custom rate quote tailored to your unique financial situation.
Licensing & Updates
See the latest licensing, announcements and updates from Approved Funding.
Contact Us
Find out the best way to contact Approved Funding to address whatever your need
Career Opportunities
See the latest Career Opportunities available for qualified and passionate individuals.