The continued high volume of refinancing kept mortgage lenders’ outlook for profits relatively high during the second quarter, although it was down slightly from the first quarter of the year. Fannie Mae’s Mortgage Lender Sentiment survey found that more than half (52 percent) of lenders who responded believed that their profit margins would be higher than the prior quarter, while the remainder were almost equally divided between those who expected lower profits or that they would remain unchanged. The survey of senior mortgage executives was conducted between May 5, 2020 and May 18, 2020.

The lender optimism was based largely on the demand for refinancing, which outweighed a perceived decline in mortgage demand. The net share of lenders reporting demand growth for refis over the

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