What is up with mortgage rates? Or rather, why aren't mortgage rates going up? That's the question we try to answer today with articles from two different angles.
First, mortgage reporter Alex Roha looks at some of the reasons rates are staying low in her article: The curious case of the enduring sub-3% mortgage rate. One reason is what's happening overseas. While widespread vaccinations are helping the U.S. economy rebound from the pandemic, other countries are still struggling, and the global economic outlook is less clear.
So, what happens if mortgage rates continue to stay unexpectedly low? Lead Analyst Logan Mohtashami examines the implications in his article: What if mortgage rates don't rise this year?
Mohtashami has been bullish on the housing economy since the beginning of 2020, laying out his incredibly accurate America is Back economic model last April in the middle of the COVID shutdowns. Decades of demographic data convinced him that we would have a surge of demand despite the pandemic, and that rising rates would help cool that off as the economy recovered.
As we know, the demand surge showed up in force, but rising rates haven't. "I believed that 23% cumulative nominal home-price growth during the years 2020-2024 would be okay, but we will hit that number before 2021 is over if things continue the way they've been going," Mohtashami writes. "That's too hot!"
Check out both these articles to find out how macroeconomic factors will impact your business.
In this episode, HousingWire Digital Media Manager Alcynna Lloyd and Editor in Chief Sarah Wheeler discuss United Wholesale Mortgage's latest Q1 earnings and the lender's strategy for growing in a purchase market.
Most experts predicted U.S. mortgage rates to be above 3% by now. We looked at bond yields across the globe to see why rates are still so low and what happens next. HW+ Premium Content
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HousingWire recently spoke with Jeffrey Morelli, general manager at Truework, about what lenders can do to prepare for and overcome the growing threat of fraud and data inaccuracy. Presented by Truework
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