Insurers Finding Brisk Demand for Mortgages

Insurance companies have seen a pickup in loan demand over the past couple of months. The activity is being driven partly by borrowers looking to lock in long-term mortgages before an anticipated increase in interest rates. “It feels like folks have finally capitulated to the fact that Treasurys are going up, so they’re getting off the fence,” said one lender at a major insurer.

Adding further fuel is a surge in property sales, as soaring valuations have pushed up the pace of trades. “There’s definitely more robust sales activity,” said the originations head at a major insurer. “People who were thinking about putting properties on the market one to two years from now are saying, “We just can’t pass up the market environment.”

(via CMA)