What's Behind the U.S. Mortgage Surge?

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March 5 (Bloomberg) -- Anthony Hsieh, founder and CEO of loanDepot.com, discusses recent trends in the mortgage industry with Pimm Fox on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

Explain for people that may not be familiar with loandepot what is this online world of loandepot?

We are a retail mortgage lender.

We are an approved lender.

We have been in business now a little over four years.

What is the reach, you say 50 states but if you want to get a mortgage in one state you want to be looking at a variety of offers for that money.

We have a hybrid approach.

We have four fulfillment sites that handle all our online customers.

We have more than 60 branches throughout the country under imortgage brand where we, to your home and give you that type of mortgage advice.

If someone were to go to loandepot.com, what would they find in the trends in mortgage interest rate?

Rex the 40 -- affordable index has shifted.

It becomes more of a challenge these days.

We did see mortgage index climb in the last week or so.

Over the last quarter has been a little bit challenging.

Inventory is tight and interest rates continue to increase.

Do you expect that trend to continue, increasing cost for money?

Rex a think so.

There is not a lot of inventory and we're seeing multiple offers in certain markets and that becomes a little bit of a challenge.

What about the investors russian mark of those people who have bought, is this the time they should be thinking of selling?

You have mentioned there is tight inventory.

We have seen historical low interest rates.

Some of the homeowners out there are hanging on to a 30 year interest rate with a three percent handle.

Many are reluctant to sell.

We are starting to see a trend where there could be a situation where there is an accidental investor and homeowners are buying another home by keeping their existing one and renting it.

You mentioned home affordability.

I wanted to expand a little bit on that because i am wondering whether you will see -- if you think there are changes to supply that comes on the market.

Real estate prices have held steady.

We are seeing in certain hotter markets affirming up in the prices, inventory is fairly low and you have rising interest rates which means that if you borrow the same amount of money, your monthly payment would increase because of rising interest rates.

When you add that to the fact that real estate prices are going up, not sharply, but they are firm enough, both of those add to a significant higher monthly payment.

Does this mean that the mortgage loan business unless you're doing this online and doing this efficiently as possible, maybe it is not that half of will of business right now create the mortgage industry is looking at a down year.

It will be down 35%. the industry is bracing for some

This text has been automatically generated. It may not be 100% accurate.

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