There are paths to homeownership even with stubborn mortgage rates, high home prices and a tough market
The current affordability challenges in the mortgage market are well documented. Home prices continue to rise, while tariffs have increased the costs of everyday items. One broker is ensuring that his clients are aware of the multiple ways to overcome these challenges.
Kevin Kenerson (pictured top) is the president of Lending Hand Mortgage in Madison, Tennessee. He said that the first step for brokers to get through to hesitant buyers is to let them know that home prices are likely going to continue increasing.
“I think the consumer is always looking for a better market, whether it’s tomorrow or next year,” Kenerson told Mortgage Professional America. “The truth of the matter is, if you look back at the last 82 or 83 years of the market, there’s only been seven years when the market hasn’t appreciated. Five of them took place between 2008 and 2013, and two in the 1950s, where it was zero growth.”
By putting the historical timeline into perspective, it may resonate with buyers who are waiting for a market crash.
“Putting off purchasing means the house is going to be more expensive,” Kenerson said. “Someone who buys a house today can refinance when the rates lower. So why not buy a house today?”
Finding assistance for those who need extra help
Knowing that home prices will likely be higher in the future doesn’t alleviate the day-to-day affordability issues that have been caused, in part, by recent market turmoil. For those borrowers, Kenerson suggests taking advantage of assistance programs to help with covering some of the homebuying expenses.
“If they don’t have a down payment, we’ll use some of our down payment assistance programs to get them into a house,” he said. “While they’re saving $5,000 or $10,000 for six or 12 months for a down payment, the rate of appreciation outweighs what they’ve saved.”
Kenerson reminds clients that by waiting another six months or a year to buy a home, the cost of purchasing that property will only be higher.
“I think you have to know your client,” Kenerson said. “We can use some of the different systems we have to show them this is what you’re giving up by not purchasing a house. We show them, ‘The cost of waiting is this.’ I think those types of reports are really important to share with our clients.”
In addition to assistance programs, Kenerson emphasized the importance of supporting customers who may be facing a challenging credit situation.
Stacey Melton of Reasy Financial is helping clients rethink low-rate mortgages by highlighting their blended debt rate. By tapping into home equity, she guides borrowers to eliminate high-interest credit card debt and regain control.https://t.co/6xJPLtDmQx
— Mortgage Professional America Magazine (@MPAMagazineUS) May 19, 2025
“We’re not necessarily credit professionals, but we have a lot of different systems to be able to tell people the things to do to get their credit score where it needs to be,” Kenerson said. “Maybe they take care of a couple of collections or pay off a couple of credit cards to get their score to 580 or 620 or whatever bucket we’re trying to get them into for a given program.
“Having those different resources, we can give them the path to keep them in a nurturing pipeline. We want to stay in front of them and have the conversations to make sure that we don’t forget about them.”
Lending a hand to those in need
There are some positive signs in the market for potential buyers. While home sales and single-family housing starts continue to slump in the early spring, Redfin reported on Monday that housing supply rose to its highest level in five years. It increased by 1.3% over the last month and 16.7% year-over-year.
According to the same report, new home listings increased to their highest level since July 2022. A buyer’s market may be developing, as the typical home that went under contract in April was on the market for 40 days, the slowest April since 2019. The typical home also sold for 1% less than the asking price.
The market remains challenging as many buyers hope for lower interest rates in the second half of the year. But Kenerson said there are opportunities available for those looking to purchase a home right now.
“There is still affordability in the market,” he said. “We don’t think there’s affordability, but there really is. While we have higher rates, it’s still a buyer’s best friend because sellers are paying concessions.”
For Kenerson, from the very beginning of his brokerage, it has been about helping consumers realize their dream of homeownership.
“At the very beginning of my career, it was helping a lot of consumers get in a position where they could buy,” he said. “So, we named our company: It was Lending Hand Mortgage, lending a hand every step of the way. We take it to heart. It’s what keeps us in this business. We stayed in it because you're helping make a difference in someone's life.
“You don't know that ripple effect that's actually taking place. It could be five or 10 years later, and we just never know how impactful purchasing house really is.”
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