The net profit margin outlook for mortgage lenders moved into positive territory in the second quarter for the first time in three years, according to Fannie Mae’s quarterly Mortgage Lender Sentiment Survey.
Mortgage rates are now down dramatically from the highs of November. The average rate on the 30-year fixed for conforming loan balances was just over 5% last fall but has fallen now to just below 4%
Lenders expect the surge in refinances to continue. The net share expecting demand growth is now positive for the first time since the third quarter of 2016.