MBA’s Mike Fratantoni on how 2020 became the year of the refi
September 29, 2020
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Today’s Daily Download episode features an interview with Mike Fratantoni, chief economist and senior vice president of research and industry technology at the Mortgage Bankers Association.
In this episode, Fratantoni discusses his recent HousingWire article and expands upon why mortgage origination volume is on track to be the highest in more than 15 years, as well as the MBA’s forecast on what’s ahead in the refinance and purchase market for 2021.
For some background on the interview, here’s a summary of the article:
The housing and mortgage markets have been the rare bright spots in an otherwise fragile economy brought forth by the ongoing COVID-19 pandemic. Mortgage origination volume this year is on track to be the highest in more than 15 years, led by a strong wave of refinances.
Just how busy have lenders been? 2003 was the last time refinance activity was as high as the $1.75 trillion MBA is forecasting for 2020.
Mortgage rates have reached record lows, driven by the unprecedented economic weakness, as well as the Federal Reserve’s substantial efforts to keep the economy afloat by cutting short-term rates to zero and purchasing more than $1 trillion dollars of mortgage-backed securities. Homeowners are benefitting from lower monthly payments, while lenders are struggling to manage high volumes – all during a time when their employees continue to work remotely, and many temporary origination flexibilities remain in place.
The Daily Download examines the most compelling articles reported from the HousingWire newsroom. Each afternoon, we provide our listeners with a deeper look into the stories coming across our newsroom that are helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd and Victoria Wickham.
HousingWire articles covered in this episode: