Inside the mortgage industry’s fight to navigate the pandemic
In today’s Daily Download episode, HW+ Managing Editor Brena Nath interviews HousingWire’s Ben Lane on how one month nearly broke the U.S. housing ecosystem as the coronavirus pandemic rocked the mortgage industry.
Lane has been closely following the pandemic’s impact on the mortgage ecosystem, breaking down some of the landmark moments that led to where the industry stands today. He also shares his thoughts on what lies ahead for the mortgages industry since the challenges born out of the COVID-19 pandemic are far from over. Here’s a quick preview of today’s interview.
What were some of the first signs that the virus was impacting the mortgage lending market?
As the virus began spreading, outside of China and then into the European countries and then eventually to the U.S., global investors sought refuge from that kind of carnage in US bonds, which are generally thought of as safer than other financial instruments, and that drove mortgage rates down to record lows, which have since been broken.
That drove mortgage rates down to lows that had never been seen before, under 3.3% for a 30-year fixed rate, and that led to a refinance boom that just exploded.
He goes on to explain the consequences that this had on the market, along with the biggest pain points that it created.
The Daily Download examines the most compelling articles reported from the HousingWire newsroom. Each afternoon, HousingWire provides its readers with a deeper look into the stories that are not only chronicling the biggest announcements within the housing finance industry but are also helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd.
HousingWire articles covered in this episode: