Question

Evaluate the mortgage market today (2020). For a prime mortgage, what is the interest rate environment and outlook?

Answer 1

ANSWER -

We are really going to see a drastic downfall of the mortgage market in the year 2020. as the whole world is under the grip of the COVID-19. there are very less chances to grow the mortgage market before August or September.

Mortgage originations depend on multiple parties i.e., on governemnt, firms and individuals but most of the governemnt offfices are closed which is afecting both lender as well as borrower.

as per the latest survey in May 2020, nearly 80 % Mortgage market was downfall due to the spread of COVID-19 and it is also assumed that the situation is also the same for the further coming months.

If this disease spreads more, many inspectors will be forced to stop visiting sites and lenders would not be able to fund the mortgages.

Interest rate environemnt and outlook refers to the factors that affect the interest rate of the mortgages. some of the important factors that create the environment of the interest rate are as follows-

1) Inflation.

2) The level of economic growth.

3) Federal Reserve Monetary policy

4) The housing market conditions etc.

These are soem of the important factors that create the environemnt of the interest rate of the mortgages. Recent trends are also involved in the outlook of the interest rate. These trends may be affected by many factors of the existed circumstances. so these are also important factors that create the environemnt for the interest rate.