Lenders see Increased Demand, Higher Profits in 2015

In its quarterly survey of lenders’ sentiment Fannie Mae
found increasing optimism about the mortgage business.  The survey conducted in the first quarter of
2015 revealed that, compared with the fourth quarter of 2014, lenders expect both
mortgage demand and their profit margins
to grow over the next three months.

The number of lenders who expect near-term
purchase mortgage demand to grow finally reversed a downward trend that lasted
throughout 2014.  More lenders expect
that, although there might be seasonal influences, the higher demand will extend
to all types of loans and the increased optimism was present no matter whom the
respondent represented; mortgage banks, depository institutions, or credit
unions.  Seventy-one percent of lenders say they expect purchase
mortgage demand to go up over the next three months compared with 59 percent
reported during the same quarter last year. 
For non-GSE eligible loans the increased demand was expected by 63
percent and for government loans by 65 percent.


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