How mortgage lenders are approaching a changed spring season

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.

2 Likes

I’m noticing increase in loan signings for spring already. Interesting.:thinking: By the end of the day yesterday I was able to secure 7 more loans for April! :pray: :pray:

1 Like

Very good info here. After reading through everything, I came up to a conclusion: People will not only accelerate on cash-out REFI’s due to rising rates, but to also offset the costs of inflation/gas-utility prices to pay their bills (good for us). The flip side? They will be more under water if another housing market crash happens (bad for them). Talk about playing the lottery!

2 Likes

That is so true! All of my refis are large cash out! I knew that when people start feeling uncomfortable about the economy they start maxing out equities to have cash on hand. We are going to have another bank bailout.

1 Like

I’m leveraging that this will happen by setting up a Tax Resolution practice.

2 Likes

This topic was automatically closed 90 days after the last reply. New replies are no longer allowed.