\n<\/p>\n
Mortgage<\/a> lenders\u2019 optimism reached a high in a first-quarter survey, even as lenders<\/a> expressed pressing challenges to their profit margins, according to Fannie Mae\u2019s 2017 Mortgage Lender Sentiment Survey.<\/p>\n\n Lenders say they\u2019re most upbeat about the direction of the economy and home prices. They also continue to report modest easing of credit standards across all loan<\/a> types, with plans to continue to do so over the next three months.<\/p>\n\n \u201cThis quarter, lenders\u2019 optimism toward the overall economy and home price<\/a> appreciation hit survey highs, mirroring the consumer confidence seen in our February Home Price Sentiment Index,\u201d says Doug Duncan, Fannie Mae\u2019s chief economist. \u201cHowever, lenders\u2019 profit margin outlook remains significantly less positive than this time last year and two years ago.\u201d<\/p>\n\n Lenders cite competition from other lenders and a market shift from refinance to purchase as the top reasons for the weak profit margin outlook, Duncan notes.<\/p>\n\n \u201cWith mortgage rates expected to rise, we expect refinance activity will fall and purchase affordability will tighten, increasing competitive pressure in a shrinking mortgage market,\u201d he says. \u201cLenders may choose to adjust their production capabilities and staff resources given their profitability outlook.\u201d<\/p>\n\n Lenders surveyed reported a sharp decline in demand expectations for purchase mortgages, mostly due to rising mortgage rates. The share of lenders who expect an increase in purchase mortgage demand over the next three months for conventional mortgages dropped to the lowest level recorded in any first quarter in the survey\u2019s history, Fannie Mae notes.<\/p>\n\n Source: Fannie Mae<\/em><\/p>\n<\/div>\n \n \n<\/pre>\n\n<\/div>\n\n\n
[ad_2]\n
link <\/a>\n<\/p>\n","protected":false},"excerpt":{"rendered":"