Correlation Between Macroeconomics and the Mortgage Industry.

With the Nation in recession, lower interest rates provoke the American population to buy and refinance homes across the country. On the other hand, there may be more mortgage payment default (foreclosures) due to the economic misfortune some people encounter. Much attention has been turned to the housing domain. Over 67% of Americans own their homes. Housing has always been an important sector in the US economy. In 2000, the housing sector as a whole contributed $1.2 trillion …

…lenders to originate mortgages for sale and not just to keep for their own portfolio. The increase in the supply of funds for mortgage lending may help drive interest rates down and thus benefit homebuyers. Investors and guarantors in the secondary market assume and manage mortgage-related credit and interest risks, and help to standardize loan origination guidelines. The government sponsored enterprises in the secondary market help to serve the underserved in housing and mortgage finance.