Here's what the looming recession means for the future of digital mortgages
Earlier today, the Duke University/CFO Global Business Outlook survey revealed that nearly half of polled Chief Financial Officers believe a recession is coming next year.
According to CNN’s coverage by business reporter Matt Egan, 48.1% of CFOs believe a recession will hit by the middle of next year. And 69% of those executives are bracing for a recession in the second half of the year.
Roostify’s CFO Eric Amblard follows the economy closely and believes that, while a recession would negatively impact mortgage lending overall, lenders with robust digital mortgage platforms will fare much better.
“A digital mortgage offers a much greater user experience over a traditional lender,” Amblard said. “In a tight market, potential homeowners are going to choose the lending option that’s easiest and most efficient to them; a digital mortgage.”
CNN also states that other polls reach similar conclusions. There is about a 60% chance of a recession starting in the United States by the end of next year, according to a National Association for Business Economics survey published earlier this month, Egan writes.
“The silver lining here is that, in a recession, the Federal Reserve will be more likely to lower its benchmark interest rate,” Amblard said. “This will further aid digital mortgage lenders with real-time pricing engines, and boost their attractiveness to Millennials, especially.
Meanwhile the mortgage lending market is showing no signs of a slowdown--just the opposite in fact. The second quarter mortgage lending sentiment survey released today by Fannie Mae shows that the net profit margin outlook for mortgage lenders turned positive for the first time in nearly three years, due primarily to strong demand expectations for both purchase and refinance mortgages.