UWMC - What Does the Current U.S. Interest Rate Mean for UWM Holdings?
One of the biggest economic stories over the past six months has been the outsized growth of inflation after a long slumber. This has caused the Federal Reserve to raise the Federal Funds rate in order to slow the economy and get inflation back under control. The mortgage banking sector, which feasted on easy refinancings during 2020 and 2021, is now experiencing a sharp slowdown.
In light of these changes, let's see how one of the biggest mortgage originators, UWM Holdings (NYSE: UWMC) aka United Wholesale, is faring.
While the Fed only started hiking rates in March, the market started increasing interest rates long before that. Since the beginning of the year, the average 30-year fixed-rate mortgage has increased by about two percentage points, to 5.27%.
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What Does the Current U.S. Interest Rate Mean for UWM Holdings?