The Next Few Months Will See Increase in Mortgage Originations
A sentiment Survey finds 64% of originators are feeling more optimistic than late last year.
Scotsman Guide’s Mortgage Originator Sentiment Survey (MOSS) is indicating that increased mortgage applications are on the way in the coming months.
MOSS showed that 64% of mortgage company respondents expect their business to perform better during the next six months compared with the second half of 2022.
Back in June, only 22% of top-ranking originators expected business to improve in the second half of 2022.
Jeffrey Sabourin, chief product officer for Scotsman Guide, said in prepared remarks, “What a difference six months make. The mortgage industry is certainly not out of the woods yet, but respondents to our survey are responding optimistically to recent market signals.”
That’s a significant turnaround from the survey’s June 2022 findings, which saw just 22% of top-ranking originators expecting business to improve in the six-month period ahead.
Surveys reflect only a single point in time and mortgage rates and Federal Reserve activity has been volatile. However, survey respondents pointed to “decreasing mortgage rates and a pullback of the Federal Reserve’s hawkish monetary policy” as factors that give them hope.
In January, 70.5% of brokers predicted better results in the next six months, compared to 61.1% of bankers.