A new Fannie Mae Mortgage Lender Sentiment Survey revealed that lenders are gaining confidence as the net profit margin outlook improved from last year's Q4 survey low.
“Lenders appear less pessimistic regarding mortgage demand expectations; thus their profit margin outlook over the next three months is also slightly improved," said Fannie Mae Senior Vice President and Chief Economist Doug Duncan, according to a HousingWire report.
"While the results seem to portray the gloomiest picture of purchase mortgage demand during the prior three months in the survey's five-year history, the net share of lenders expecting rising demand over the next three months exceeded the level recorded in the same quarter last year.”
The good news for lenders comes from the rising demand for both purchase and refinance mortgages from borrowers.
"For refinance mortgages, while more lenders continued to report weaker refinance demand than those seeing rising demand, the net share of lenders reporting demand growth over the prior three months increased significantly to the highest level in two years across all loan types," said Fannie Mae, according to the report.
To learn more about the increase in borrower demand for purchases and refinance mortgages, click on the image above.