Each quarter, Fannie Mae asks senior mortgage executives for their views on the upcoming mortgage market. Their Mortgage Lender Sentiment Survey can be a good predictor of what’s ahead for housing. So what are mortgage execs saying about the coming spring and summer market? Well, for starters, they expect access to credit to remain stable.
After tightening last spring, credit standards have eased over the past year and are now at pre-COVID levels. That means, qualified buyers should feel confident in their ability to be approved for a loan. Lenders also expect buyer demand to remain high this year. In fact, the survey found “demand expectations over the next three months rose significantly across all loan types from last last quarter and remained similar to the levels seen in Q1 2020.”
In short, lenders are expecting a hot purchase market. However, though optimistic about demand from buyers, lenders aren’t as confident in refinancing activity. With mortgage rates expected to increase from all-time lows, they predict there will be fewer homeowners looking to refinance as the year progresses. (source)