In particular, the article looks at the current state of the mortgage market and the trends that suggest continued growth into the next year.
The article begins by discussing the macroeconomic environment in which the mortgage market currently resides. It notes that low interest rates have encouraged strong mortgage demand, despite the economic sluggishness caused by the ongoing pandemic. The article mentions that current underwriting criteria has also been relaxed by the government to facilitate the purchase of homes and so increase activity in the mortgage market.
The article then examines the current trends in the mortgage market. It highlights the increasing prevalence of adjustable-rate mortgages (ARM) and how these are attractive to home buyers due to their lower interest rates. It also notes that mortgage servicers are playing a more active role in the mortgage process, particularly with regards to down payment assistance programs. These programs are helping more people become eligible for mortgage financing.
The article proceeds to explore other areas of the mortgage market set to benefit from growth in 2021. These include non-qualified mortgages (NQMs); jumbo loans; refinancing; reverse mortgages; manufactured housing; and residential & commercial real estate confidentials. With regards to each area, the article provides an analysis of the potential benefits they bring to the mortgage market and how they can help drive market growth next year.
Finally, the article reflects on some of the obstacles that may hamper growth in the mortgage market over the coming year. These include the expiration of forbearance periods, potential spikes in unemployment rates, and financing challenges faced by certain demographics.
In summary, Mortgage News Daily’s recent article is an extensive look into the potential for the mortgage market to continue its growth in 2021. The article examines the macroeconomic environment in which the mortgage market currently resides and the various trends that suggest continued growth in 2021. It also explores the areas of the mortgage market that are set to benefit from growth next year and the potential obstacles that may hamper this growth. Ultimately, the article offers an insightful analysis of the current state of the mortgage market and the prospects of it continuing its growth trajectory into the next year.
This article was contributed on Dec 16, 2023