Joel Kan, Associate VP of Economic and Industry Forecasting at MBA, noted that both purchase and refinance requests had decreased, although mortgage rates fell from five basis points to 3.15%.
However, the mortgage professionals consulted by the MPA downplayed the validity of the data. Kirk Tatom (pictured above), the president of Tatom Lending, said “8% seems like a stretch,” but admitted that his company has also seen an annual decline, albeit a smaller 4%.
“Anyone who can refinance has probably already done so, so I wouldn’t be surprised to see a drop in volume. We’ve had a great party for the past 16 months, but at some point the barrel will float, ”he said.
However, he cautioned that brokers should “prepare for the future” as the industry “has been running at breakneck speed for some time”.
Austin Niemiec, EVP of Rocket Pro TPO, was not alarmed by the data, saying mortgage brokers have the ability “to turn on a dime” to help customers regardless of market conditions.