Cost-cutting is a rising priority for mortgage lenders, according to Fannie Mae’s Chief Economist Doug Duncan. Faced with declining profits, mortgage lenders are looking to court more business to make up for the lower share of homeowners who are refinancing. Mortgage rates are up about 80 basis points since last September, which has decreased the incentive for homeowners to refinance. Further, existing-and new-home sales were both down in April, and mortgage applications for home purchases have fallen 2.9 percent from April to May.
