"Elezaj said even modest rate declines can prompt borrowers to act. Some homeowners refinance after a 25-bps drop particularly those with larger loan balances while others wait for reductions closer to 50 bps. A large pool of borrowers who obtained mortgages in the mid-6% to 7% range in recent years now have opportunities to lower their payments if rates decline further, he added."
"UWM currently averages about 12 days from loan submission to clear-to-close, he said, and it has invested in staffing and technology to handle increased volume. Elezaj pointed to the company's artificial intelligence platform, MIA, which proactively contacts borrowers when rates fall. When rates dropped recently, MIA made 35,000 calls in a single day, he said. She's working 24/7, 365 to identify where consumers can benefit from rate drops."
Mortgage origination activity shows early-cycle momentum after years of suppressed volume, supported by rates roughly 80 basis points lower than the same time last year. Demand is rising as borrowers seek to reduce payments, with some refinancing after 25 bps declines and others waiting for drops closer to 50 bps. A large cohort with mid-6% to 7% mortgages now has meaningful opportunities to lower costs if rates move down. Lenders are aligning production with industry forecasts and investing in staffing, technology, and AI platforms to handle potential surges and proactively contact borrowers when rates fall.
Read at www.housingwire.com
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