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Despite health, social, political and economic disruption unlike any seen in the past century, mortgage originations soared in 2020 - due to a refinance boom driven by historically-low rates. Purchase mortgage activity may see a drop of as much as 20% as a result of widespread unemployment and economic uncertainty resulting from the COVID-19 pandemic.

As the COVID-19 pandemic continues, its impact on the housing and mortgage industry is constantly changing - especially in how it effects the size and composition of the homebuyer pool. What does this mean for the 2020 purchase mortgage lending?

The coronavirus will greatly shift the number of U.S. households that are ready, willing, and able to buy a home. This blog provides interesting detail about how COVID-19 will reduce the homebuyer pool, and how the 2020 mortgage lending market will drop considerably as a result.

The U.S. now leads the world in coronavirus cases, and there are no signs of it slowing down soon. As U.S. unemployment claims hit a record high and the world economy shifts in unprecedented ways, there will undoubtedly be a profound impact on housing and lending.

What does the future hold for the U.S. mortgage market in 2020? The year started with a positive economic outlook and record-low interest rates; the best combination of conditions possible for lenders to have a record-setting year. However, the sudden uncertainty and fear accompanying the COVID-19 epidemic is severely rattling financial markets and making a recession seem likely. Only time will tell.