Good afternoon —
We all knew it was coming, but as yields on the 10-year Treasury continue to rise, driving mortgage rates into solid 3% territory, this really could be the end of the refi boom. It still looks to be a great year for purchase, but for lenders used to easier refis, it's going to take some adjusting.
Speaking of adjusting, brokers trying to make a decision on which wholesale lender to use have had an interesting two weeks. Managing Editor James Kleimann reports today on the latest in the UWM/Rocket broker battle, looking at who the real winner(s) might be since UWM CEO Mat Ishbia issued his ultimatum. It's not easy to discern at this point, as both UWM and Rocket say they've come out on top. Read the whole story here.
One of Ishbia's motivations for the broker ultimatum was the "existential threat" he sees being posed by Rocket, drawing a parallel between Rocket/brokers and Zillow/real estate agents.
Interestingly, news today shows just how much existential threats can evolve. Turns out that a SPAC led by Zillow co-founder Spencer Rascoff is going to take iBuyer Offerpad public. Rascoff departed Zillow as company CEO in early 2019, replaced by another company co-founder, Rich Barton.
As Senior Financial Real Estate Reporter Matthew Blake writes:
"One reported reason for Rascoff's exit was – get ready – that he didn't do enough Zillow's iBuying program, Zillow Offers. Under Barton, Zillow has since pivoted hard to iBuying. He has said not doing so would represent an 'existential crisis.' The majority of the company's 2020 revenue and expenses came from Zillow Offers."
Until tomorrow, and a whole new set of threats —
Sarah Wheeler
HousingWire Editor in Chief
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