Preparing for a 5% rate?

If you've been following MBA's mortgage forecasts, you'll know that expectations have changed dramatically in just the last few months.

View in browser Good afternoon! Was this newsletter forwarded to you? Sign up here. Hello, LOs!   If you've been following the MBA's mortgage forecasts, you'll know that expectations for the mortgage industry have changed dramatically in just the last few months.    In December, the trade group projected the 30-year mortgage rate to be at 3.2% in 2021, 3.6% in 2022 and 4.1% in 2023. As of March 19, projections were revised to 3.6% in 2021, 4.5% in 2022 and 5.0% in 2023.    Similarly, the MBA in December projected $2.75 trillion in 2021 purchase and refi volume, $2.20 trillion in 2022 and $2.17 trillion in 2023. A few weeks ago, projections were updated to $3.18 trillion in 2021, $2.31 trillion in 2022, and $2.29 trillion in 2023.   One interesting nugget Clayton Collins spotted is that 78% of all 2021 single-family residential refi volume is projected to be originated in the first half of the year.    According to Freddie Mac's latest PMMS, rates over the past week fell 5 bps to 3.13%, which is still stupid-cheap. Remember that in 2018, rates were 4.5% (though that was not a particularly good year for mortgage banking).    I'm curious to hear what you all are forecasting, and how you're adjusting your strategy to capitalize on the rate climb.    Where do you expect rates and volumes to be at the end of this year? Are you bold enough to make a prediction about next year and 2023? You can email me anonymously at jkleimann@housingwire.com. Whoever correctly predicts the exact rate for 2021 will receive a year's membership to HW+ for free.   James Kleimann Managing Editor, HousingWire Mortgage rates drop slightly to 3.13%   Good news for those who thought they missed forever rates – mortgage rates ticked down last week for the first time in roughly two months. HousingWire's 2021 Women of Influence nominations are open   First introduced in 2010, HousingWire's Women of Influence award recognizes outstanding women in housing who are moving markets and paving the way for other women around them to do the same. How borrower education can make housing more attainable   The current housing market is making it difficult for prospective buyers to afford a home. Housing professionals need to find ways to better meet buyer needs. Presented by Fannie Mae Does CFPB have authority to postpone foreclosures?   At the peak of forbearance, nearly 6 million borrowers were in some form of forbearance, but over half of those homeowners have since exited. Close loans faster with quick and easy VOE+VOI verifications Stop chasing down verifications across multiple service providers. Truework can process all of your VOE + VOI verifications in one easy-to-use tool. Lenders are saving time and eliminating hassle by using Truework. Uplevel your underwriting today. Sponsored by Truework HousingWire, 433 East Las Colinas Blvd., Suite 830, Irving, TX 75039, (469) 893-1480 Unsubscribe Manage preferences

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