Mike Patterson, COO of Freedom Mortgage Corp, anticipates major changes by 2025 in the mortgage servicing industry, particularly concerning interest rates, reform of GSEs, and conforming loan limits.
Patterson emphasizes, 'For a significant refinancing wave to occur, mortgage rates must drop to the low 4% range,' considering the average cost of capital is currently between 4% and 5%.
Bill Greenberg, CEO of Two Harbors Investment Corp, contends that upward pressure on rates is likely due to increased fiscal deficits and persistent inflation challenges, stating, 'The economic case for lowering rates isn't that strong.'
Greenberg adds, 'Mortgage rates here at 7% don't particularly strike me as being biased lower,' indicating skepticism about a market correction favoring lower mortgage rates.
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