When asked about whether or not these gains lead to overarching optimism for the direction of the industry or if caution should remain, RMI President John Lunde said he'd split the difference. I'll call it cautious optimism, he said.
H4P gains are particularly encouraging, which likely stems from renewed industry attention likely brought about by rule changes announced in 2023 and 2024 by the Federal Housing Administration (FHA).
Refi is generally going to happen where home price appreciation has been the strongest for the past several years, which can outpace the decline in principal limit factors from higher interest rates, he said.
As for what industry professionals should be keeping in mind, purchase may be the name of the game in the near future, Lunde said. I continue to think it's all about purchase business, and getting in front of borrowers that are looking at a forward mortgage right now, he said.
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