Two years of pandemic borrowing is continually reshaping the way lenders do business.
Originators produced a record $4.4 trillion in volume last year, reaching an all-time high purchase lending and a 17-year high in cash-out refinances. But today, the mortgage industry faces headwinds on many fronts, including rising mortgage rates and seemingly unstoppable home price growth with a current average of nearly $364K nationwide, according to Redfin. Residential construction lending is up but the pipeline has a long way to go in alleviating supply.
As they head into the Spring, mortgage lenders and brokers predict a busy, competitive landscape but say more non-QM loans will fill volume gaps caused by low supply. Borrowers won’t forgo the peak home buying season and the industry will continue to adopt e-closings in a quest to ease the process of the transaction, experts said.