“And that’s not going to change with the rates pulling back a little bit. Having learned how to successfully close a couple of non-QM loans, they’re not going to, all of a sudden, stop doing that. They’re going to continue, so I’m excited about that.”
Focusing solely on agency and government-type loans once the market reverts to a degree of normality, Hutchens said, means brokers will be prioritizing a “very limited” product set, particularly with the number of self-employed borrowers and individuals unable to avail of those options on the rise.
What falling rates mean for the mortgage market
Financial markets’ growing conviction that a Federal Reserve rate cut is on the way in September amid a darkening economic outlook has helped push mortgage rates lower in recent weeks, contributing to a positive overall atmosphere for the mortgage space heading into the final quarter of the year.
Rates hovered stubbornly around the 7% mark throughout much of the spring and early summer, but have dipped as low as 6.44% recently with a further decline anticipated in the months ahead.
US mortgage rates are falling, and Kurt Brandly of Greenside Capital sees a surge in activity! With the Fed expected to cut rates, now might be the time to act on refinancing or buying. https://t.co/Tg7lw8vzgX
— Mortgage Professional America Magazine (@MPAMagazineUS) August 26, 2024
That’s a welcome development, according to Hutchens, after the volatility that’s permeated the market since rates began to rise in 2022. “Everybody’s very optimistic on what’s happening,” he said. “We’re just seeing a lot more transactions in the market. I think there’s truly enthusiasm in the mortgage industry because it’s been a tough couple of years – everybody admits to that.
