Mortgage Industry Veteran Compares Market Conditions To 'Unknown Distance Ruck"

Linda Davidson of Fairway Independent Mortgage Company equated the current market conditions to the “unknown distance ruck,” used to assess Rangers, Green Berets and many other Special Operations Units. 

In her Facebook post, Davidson says “the ruck is often called ‘the ultimate equalizer’.”

“As a student of this industry for almost thirty years, [I] have been often asked when I think that this season will end-   higher interest rates, low inventory, and margin/pricing compression. In the almost 30 years that [I] personally have been in the business, [I] have never seen all three at the same time for such a long. Different times for each, yes- but not all together for this long. There are several things to remember….”

She says that in 2020, 2021, and part of 2022, the industry pushed a ton of loans through a funnel that needed to expand quicker than anticipated. 

“That market is no longer and the swing can be painful,” Davidson added. 

She said the late David Stevens felt that 2025 would be one of the largest purchase markets in history and while we must prepare, “we also have to live in the now.” 

She acknowledged that it’s much easier to lead when the market is growing, but now is the time for leaders to lead. 

“Embrace the hard,” Davidson says. 

Fannie Mae is predicting that total mortgage origination volume will be $1.92 trillion in 2024 and the Mortgage Bankers Association says it's going to be $2 trillion, a small decrease from its January forecast. This is at the same time as mortgage rates are inching back up to 7%. 

“In the history of mankind, there has never been a storm that lasted. This, too, shall pass,” Davidson says.