Mortgage Market Slump: Is it Interest Rates or Jobs and Consumer Income?
Over the past week, most of the major banks in the mortgage sector have been issuing guidance to investors regarding the outlook for mortgage lending volumes going forward in 2014. I have been concerned about the transition for the industry from the boom refinancing of existing mortgages at lower rates to a sustained reliance on home purchase mortgages, both for banks and non-bank lenders. The good news is that the mortgage loan refinance boom lasted longer than anyone had expected, the bad news is that boom is over as interest rates rise. Continue reading