With rising home prices, interest rates inching higher, and housing inventory still in the low, it’s only logical to predict that mortgage purchase volume this year would dwindle. But a recent survey by Lenders One Cooperative says otherwise.
Out of the 200 lenders that participated in the survey, 94 percent expect an increase in mortgage purchases, a significant march up compared to last year’s 62 percent.
Furthermore, more than half of the lenders (59 percent) expect a rise in first-time homebuyers. This is in line with a report from the National Association of Realtors released recently showing a relative increase in first-time homebuyer’s share in mortgage purchase originations from 2015 to 2016.
Non-QMs on a comeback
Consumer debt is seen as a potential risk factor that could challenge growth. Almost majority of the lenders (93 percent) said they already dispense Non-QM loans, though most of this bulk come from jumbo loans – a loan choice that increased parallel to the rise in home prices.
Will the prediction deliver? Bryan Binder, CEO of Lenders One believes so, if the lenders shift their focus into the purchase market and use tools and solutions that could improve efficiencies in business.