Lender outlook on profit margin, mortgage demand expectation sinks
According to Fannie Mae’s Q1 2018 Mortgage Lender Sentiment Survey®, mortgage lenders reported a net negative profit margin outlook for the sixth consecutive quarter, matching the all-time low reading from Q4 2016. Those who expect a lower profit margin continued to point to “competition from other lenders” as the primary reason, followed by “market trend changes.”
Compounding their profit margin concerns, more lenders also have a negative view of consumer demand for purchase and refinance mortgages.
For detailed findings from the first quarter 2018 survey, as well as survey questionnaires and other supporting documents, please visit the Fannie Mae Mortgage Lender Sentiment Survey page on fanniemae.com. Also available on the site are special topic analyses, which focus on findings and analyses of important industry topics.
Estimates, forecasts, and other views expressed in this article should not be construed as indicating Fannie Mae’s expected results, are based on a number of assumptions, and may change without notice. How this information affects Fannie Mae will depend on many factors. Neither Fannie Mae nor its Economic & Strategic Research (ESR) Group guarantees that the information in this article is accurate, current, or suitable for any particular purpose. Changes in the assumptions or underlying information could produce materially different results. The ESR Group’s views expressed in this article speak only as of the date indicated and do not necessarily represent the views of Fannie Mae or its management.