How Mortgage-Industry Priorities Are Shifting

Fleming: “I expect a lot more demand for homeownership in the future, as Millennials age into their prime home-owning years.”

IRVINE, CA— The home-mortgage industry is moving from a regulatory-and-compliance-change focus to a more forward-looking stance on process and product innovation to meet the needs of its new customers, Millennials, First American Financial Corp.’s chief economist Mark Fleming tells GlobeSt.com. In a recent report, Fleming highlighted the impact of rising rates on market potential and prices.

“The market potential for existing-home sales continues to grow based on the strength of the broader economy, particularly wage growth, as well as improving access to credit,” said Fleming in the report. “But, the market continues to underperform its potential, primarily a result of persistently tight inventory. The post-election ‘Trump Bump’ in long-term US treasury yields that triggered mortgage rates to rise above 4%, as well as the increase in the Federal Funds rate last week, will likely have a modest cooling impact on potential home sales heading into 2017.”