UWMC - Is United Wholesale Signaling a Price War?
Mortgage origination is a feast-or-famine business, and business conditions can turn on a dime. Last year was the best for the mortgage industry since 2003, and a number of mortgage bankers went public. Yet in 2021, the mortgage banking sector has completely underperformed.
The stock price of UWM Holdings (NYSE: UWMC) , also called United Wholesale Mortgage, has fallen 43% so far in 2021, despite the company having just reported the best quarter in its history. What is going on?
Last year, mortgage originations hit $3.83 trillion, according to estimates from the Mortgage Bankers Association. The MBA sees origination volume falling 14% in 2021 as rising interest rates take a bite out of refinancing volume. While 14% sounds like a big decline, the projected volume of $3.28 trillion would still be the third-best year ever. So why are investors so glum about the sector?
For further details see:
Is United Wholesale Signaling a Price War?