On its second annual survey of 200 mortgage lending professionals, the Lenders One Mortgage Barometer found that 94% expect an increase in mortgage purchase production this year. That’s up from just 64% last year.
Three in five lenders (59%) said the chances are high that the number of first-time homebuyers would increase this year due to continued economic improvement. Lenders are also anticipating some obstacles in the growth of the industry, with consumer debt as the biggest issue (41%).
Ninety-three percent of lenders also said that they were already originating non-QM
loans; 91% said they expect a “significant increase in jumbo loan origination volume in 2017 for their organization.”
Millennials (85%; 79% last year) and Generation X (86%) were seen as the most promising groups to boost the market this year, followed by non-traditional buyers – rental and vacation homes – with 84% (70% last year) and boomerang buyers with 83% (68% last year). Baby boomers came in last at 82%.
With the emergence of Airbnb, 82% said they expect to see more people wanting to “finance larger homes to take advantage of rental incomes.”
“To be successful in this environment, lenders need to focus on the purchase market and new innovation to replace lost refinancing volume,” Lenders One CEO Bryan Binder said. “Lenders must also focus on tools and solutions to help them improve operating efficiencies within their businesses.”
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Mortgage lenders are positive this year will see an increase in mortgage purchase production, according to a news release.