A look at the mortgage hot topics for 2024

Key Takeaways:

– Mortgage rates are predicted to end this year at 7.2%, with the possibility of further rate drops in the future.
– The inflation fight is ongoing, with the Fed’s goal of 2% inflation still not reached.
– The Mortgage Bankers Association predicts rates of 6.8% for Q1, 6.6% for Q2, 6.3% for Q3, and 6.1% for Q4 in 2024.
– Homebuyers are facing affordability issues due to inflation and low inventory, but GSEs provide loan approval guidelines that help in tough cycles.
– Media stories about home affordability often overlook the flexible guidelines provided by GSEs.
– Mortgage tech plays a crucial role in educating and coaching consumers.
– Originators and servicers will continue to streamline their tech in order to improve efficiency.
– Mortgage origination fintech consolidation is expected to continue in 2024.
– CoreLogic’s acquisition of a POS system exemplifies the trend of integrating different capabilities in the loan manufacturing process.
– Servicing systems must provide a single user experience and share data in real time.
– Cloud-native, open-API ecosystems are important for operational flexibility and easy integrations.
– Sagent is making investments in these capabilities to create a world-class experience for consumers.


As we plan for a gradual cycle turn in 2024, a few hot topics feel especially hot right now. What’s next for the inflation fight and rates? How do we help homebuyers navigate affordability? And how should mortgage firms rethink tech strategy? Below I run down these hot topics and look forward to going deeper with fellow mortgage CEOs on a HousingWire webinar December 5. Please reach out with your intel so we can all sharpen up ahead of 2024.

What’s next for the inflation fight and mortgage rates?

The Mortgage Bankers Association predicts rates will end this year at 7.2%, and that feels realistic now.

Thanks to a rate hike pause and dovish Fed statement on November 1, mortgage bonds rallied and rates dropped from near-8% to 7.5%.

But when the Fed’s preferred Core PCE inflation measure is 3.7% and their goal is 2%, it means the inflation fight isn’t over. Here’s what Fed Chair Jerome Powell said at his November 1 press conference: “Inflation has moderated since the middle of last year, and readings over the summer were quite favorable. But a few months of good data are only the beginning of what it will take to build confidence that inflation is moving down sustainably toward our goal. The process of getting inflation sustainably down to 2% has a long way to go.”

How long?

Here are the MBA’s 2024 rate predictions by quarter: 6.8% for Q1, 6.6% for Q2, 6.3% for Q3 and 6.1% for Q4.

How do we help homebuyers navigate affordability?

This implies easing inflation next year, and mortgage rates near 6% would help affordability issues caused by two things:

  1. The inflation fight has fueled the mortgage rate spike
  2. Low inventory and a steady job market have put a floor on home prices

The good news is that GSEs remain committed to loan approval guidelines that help in these tough cycles.

Media stories about home affordability rarely cover how the GSEs allow for low down payments and higher debt-to-income ratios. Media headlines make borrowers nervous, but lenders make loans.

And when lenders — not headlines — explain cash-to-close and monthly all-in costs relative to incomes, the lights go on for borrowers.

Can flexible GSE guidelines help today’s challenged homebuyers in a systemically safe way?

I think so because total U.S. mortgage delinquencies — which include conventional, FHA and VA loans — are still near record lows of 3.37% per the MBA.

Also, U.S. housing value is now $44.5 trillion per Urban Institute, and total mortgages outstanding are $13.9 trillion per MBA. That implies there’s 68.7% equity in the American housing system.

Originators and servicers must double down on educating consumers and coaching them through this cycle.

How should mortgage firms rethink tech strategy in 2024?

Mortgage tech is a huge part of enabling this education, but in this lean period, originators and servicers will keep looking at how to streamline their tech.

In originations, lean shops have argued during this cycle that they need loan manufacturing (LOS, POS), pricing, marketing and everything else is expendable.

This implies continued mortgage origination fintech consolidation in 2024.

A good example here is CoreLogic buying a POS this year and bringing it together with their valuation and automated underwriting capabilities. This makes the POS more relevant as a loan manufacturing tool, giving loan officers and underwriters a more complete borrower and property profile sooner in the process.

In servicing, the must-have capabilities are more comprehensive: core servicing, consumer, default and loan movement (onboarding, transfers, etc.). 

And there are two things these systems must do to ensure servicers can affordably educate and engage consumers:

  1. Provide a single user experience (UX) and share data so all users — consumers, servicers, investors, regulators — see the same things across the entire system in real time.
  2. Run on a cloud-native, open-API ecosystem giving servicers operational flexibility to manage easy and inexpensive integrations.

A good example here is Sagent, which will start demoing these capabilities after we move into 2024. We cannot wait to show it to you.

This is what creates a world-class experience for consumers when they need it most.

And throughout this cycle, Sagent is the only fintech player making major investments in this future when servicers need it most.

Source link

Property Chomp’s Take:

Hey there! Let’s talk about the

element. It may not sound like the most exciting topic, but it plays a crucial role in web development. So, what exactly is a

? Well, it stands for “division” and is used to create sections or containers on a webpage.

Think of a

as a box that you can put other elements inside, like text, images, or even other

s. It helps organize and structure the content on a webpage, making it easier to style and manipulate using CSS (Cascading Style Sheets).

elements are incredibly versatile and can be used for a variety of purposes. For example, you can use them to create a header section at the top of your webpage, a sidebar for navigation links, or a footer at the bottom. By nesting multiple

s within each other, you can create complex layouts and designs.

One of the great things about

s is that they have no inherent meaning or styling. This means you can customize them to fit your needs. Want a colorful background? No problem. Need to center the content within a

? Easy peasy. With CSS, the possibilities are endless.

But why are

s such a hot topic right now? Well, they have become even more important with the rise of responsive web design. As more people access websites on different devices with varying screen sizes, it’s crucial to have a flexible layout that adapts to different resolutions.

s, along with CSS media queries, allow developers to create responsive designs that look great on any device.

So, whether you’re a web developer or just curious about how websites are built, understanding the power and flexibility of the humble

is key. It’s a fundamental building block of modern web design and will continue to be an essential tool for creating engaging and interactive web experiences.

Now that you know a little more about

s, I hope you can appreciate their importance and versatility in web development. So next time you visit a website, take a peek behind the scenes and see how

s are used to structure the content you see on your screen.

Leave a Reply

Your email address will not be published. Required fields are marked *