Mortgage Volumes Will Explode Over 2016, Says Wells Fargo
Falling long-term bond yields hurt banks, but lower rates are encouraging people to refinance their mortgages and buy new homes.
Mortgage volumes are expected to be 20% to 25% higher this year than the $1.5 trillion originally anticipated across the industry at large, says Wells Fargo, the nation’s largest mortgage lender by origination volume, the Wall Street Journal reports. And JP Morgan Chase is feeling optimistic too—the firm says industry mortgage volume could shoot up by 50% this year.
“There is much more demand than we expected,” says JP Morgan's head of mortgage originations, Steve Hemperly. “We’re not acting like this is a window that’s closing quickly.” [WSJ]