Low mortgage rates and housing’s double-edged sword

HousingWire Daily

In today’s Daily Download episode, HW+ Managing Editor Brena Nath discusses the housing industry’s catch-22. Currently, mortgage interest rates are lower than ever, but millions of U.S. borrowers still can’t receive a home loan.

For some background on the story, here’s a brief summary of the article:

Despite the fact that mortgage rates have been at or near record lows for more than a month, millions of potential borrowers are facing a situation where it’s simultaneously never been a better time to buy a home and never been harder to get a mortgage; a true mortgage catch-22.Ironically, the cause of both the record low-interest rates and certain borrowers’ powerlessness to take advantage of those rates is the same thing: the coronavirus. Even as the impact of COVID-19 has driven mortgage rates down, the virus has also crippled the U.S. economy, sent unemployment skyrocketing, and altered the mortgage lending landscape so deeply that it may take years to recover.That’s leading to millions of would-be borrowers being left behind thanks to a brutal combination of factors that’s making it nearly impossible for them to get a loan, even if they want and could get one otherwise.

Following the main story, HousingWire Digital Producer Alcynna Lloyd covers the Mortgage Bankers Association report that claims almost 4 million mortgages are now in forbearance, housing market research from Amherst that claims government resources are leaving renters behind and MBA data that indicates the mortgage delinquency rate jumped in the first quarter of 2020.

HousingWire articles covered in this episode:

2020-05-12 7 min

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