United Wholesale Mortgage (UWM), which claims about a third of the market share in wholesale mortgage lending, is now offering its brokers the ability to offer borrowers 30-year fixed-rate loans as low as 2.5%.
That compares to 3.57% posted for a 30-year fixed on Bankrate.com as of this writing, although that site says many lenders have removed their rates because of current market volatility caused by the coronavirus pandemic.
(UWM's example is $829.78 monthly for the principal and interest payment on a $200,000 30-year fixed-rate loan at 2.875%. Bankrate's calculator at 3.57% puts that monthly payment at $905.92.)
Confident in a rebound
That volatility -- and the quest for market stability -- was part of the pitch for UWM's new Conquest mortgage program, which CEO Mat Ishbia says is intended to help move along a market that is bottoming out and poised to rebound.
In a Facebook (NASDAQ: FB) pep talk for brokers that included an announcement about the new program, Ishbia cited a slowing pace of job losses and moves by the Federal Housing Finance Agency around forbearances and servicing backed loans as some of the reasons for his confidence.
"The purchase season is coming, so we all need to be getting ready for that," Ishbia says in the 16-minute video. He added that with markets opening back up, "and open houses happening again, purchases are going to be strong in June."