Digital Risk’s Jeffrey Taylor was interviewed on The Bloomberg Advantage following the announcement of the HARP Program extension and Janet Yellen’s comments that interest rates will likely rise by the end of 2016.
During the interview, Jeff discusses what potentially rising interest rates could mean for mortgages, why the HARP program has been extended, the status of the mortgage market and his thoughts on where the market is heading.
Regarding the refinancing arena, interest rates continue to stay low, so more and more homeowners are taking advantage of low rates by refinancing their homes. As far as whether there are any troubling developments in the housing sector, Jeff says “Not really. Delinquency rates are literally at all-time lows at half of one percent. The mortgages being originated right now are of the highest quality.” While the credit box may be tight, Jeff believes that credit is being extended to those who can afford these homes. He asserts that overall, lending is happening very responsibly right now.
When it comes to the extension of on the HARP program, Jeff is all for it. He asserts that the HARP program has been very successful, helping over 3 million borrowers refinance their homes. Jeff also shared that he believes the program was extended, from an end date of December of 2016 to a new end date of September of 2017, to give time to the newly elected administration to get their arms around the program.
Throughout the rest of the interview, Jeff provides insights on which markets are stable and hot right now, as well as what direction the mortgage market is heading. He closes out the interview commenting on how a rate hike could affect the refinance market and the mortgage market overall. Jeff feels that even though a rate hike could result in a dip in the refinance market, this outcome is unlikely due to the fact that there will likely not be a rate hike by the end of the year. Jeff feels that the global economy, combined with the nation’s significant amount of debt, will lead the FOMC to refrain from raising interest rates.
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