Villegas said the biggest topic of conversation in the broker community over the last three to six months had not been about the effects of the pandemic but the changes happening in the marketplace. “It’s no longer a refi-strong market – it’s actually now going towards purchasing and how to make more with less,” he said.
But with mortgage applications beginning to drop (during the second week of October they were 10% lower compared to a year ago), there is uncertainty in this space as well.
“Everybody that tells you that they know what’s going to happen is lying to you, or they’re kidding themselves. This is definitely what we’re seeing from brokers,” he commented.
While most brokers appeared to agree that the purchase space will be taking over refis in the short to medium term, Villegas suggested that originators should start considering other options. “Refis are gone if you were pitching a 30-year or a 20-year mortgage, but your customers are now looking at how to manage their money.
“I think that’s the next level up, possibly in the next two to five years.”