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Lender Survey Predicts Continued Low Rates in 2020
Friday, March 13, 2020
With the caveat that its Lender Sentiment Survey was
conducted in February when the world was a very different place, Fannie Mae
says mortgage lenders set several new highs with their optimistic outlooks for
business in the first quarter. Fifty-one percent of lenders surveyed believe their
profit margins would grow this quarter compared to Quarter 4 of 2019.
Forty-four percent expected them to remain relatively flat. Only 4 percent were
expecting profits to decline. Consumer demand was the primary reason for the
optimism regarding profits. It was mentioned by 67 percent of respondents while
operational efficiency, i.e. technology, was cited by 51 percent. Among the few
who expected profits to decrease, competition (50 percent) and staffing costs
(42 percent) were the leading reasons.
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