Lenders Expect Low Rates To Spur Activity
Fannie Mae's quarterly Mortgage Lender Sentiment Survey tracks the views and outlook of senior mortgage executives. And, according to their first-quarter survey results, those executives feel good about the mortgage market. Why? Well, mostly because mortgage rates are at, or hovering just above historic lows. Doug Duncan, Fannie Mae's senior vice president and chief economist, says lenders are expecting strong consumer demand for mortgage loans. “Lenders' expectations of consumer demand for purchase and refinance mortgages hit survey highs this quarter, with many lenders pointing to favorable interest rates as the engine driving the demand,” Duncan said. “The first quarter survey data, which were collected during the first two weeks of February, do not reflect the potential impact of the decline in the 10-year Treasury rate seen in recent weeks.” In short, Duncan expects mortgage rates to stay low this year, providing current homeowners a chance to refinance their loans and prospective home buyers the opportunity to buy while rates are lower than they've been in years.