The mortgage industry is struggling with higher rates and a sharp drop in buyer demand. Rocket RKT says it’s got a plan to turn things around.
“It can be painful … some companies are closing their doors, others are shutting down divisions of their companies. Others are doing layoffs,” Farner added. “Unfortunately, that’s part of the process — that capacity comes out.” Rates are up from 3.16% this time last year, to 6.02% in mid-September, according to a weekly survey by Freddie Mac. The massive drop in sales and the sector more broadly has led to some experts calling it a “housing recession.”
When rates went back up to 2008 levels, these non-bank lenders were stuck. Mortgage demand is down by nearly 30% from the same time last year. “The massive drop in sales and the sector more broadly has led to some experts calling it a ‘housing recession.’” Rocket’s market share is about 6.4% currently, Inside Mortgage Finance said, which is the largest among all banks and non-banks, as of the first quarter of this year.
Last Friday, Rocket announced its ‘Inflation Buster’ program, which offers to shave off one percentage point off a buyer’s mortgage for the first year of their loan.
Shaking my head no one could have foresaw this early last year, we were all blindsided $rkt
You won’t hear that from Joe Biden or CBS!
Take all that real estate and demolish it and turn it into grass fields and trees. We don’t need to go to offices to work.