The coronavirus sent rates plummeting, which created a surge in mortgage refinances. However, lenders are struggling to keep up with the requests. Some companies now have a backlog that may delay refinancing.
"I've never experienced anything like this,'' says Gordon Miller, owner of Miller Lending Group, in Cary, N.C. He says the volume of calls to his business had quadrupled as of early March, according to USA Today.
"We're getting lenders saying 'No refinance today. Only purchases' ... I've been telling borrowers the industry is begging for a timeout.''
While the initial influx caused quite a boom in the mortgage industry, it is now causing issues for lenders who are just trying to keep up.
"During the first week of March, refinancing applications reached their highest level in nearly 11 years, and jumped 79% week over week, the largest leap since November 2008," the article said.
"Mortgage loan applications also spiked, reaching their highest number since April 2009, according to the Mortgage Bankers Association."
Some of the larger lenders in the country began hiring as much personnel as they could to ensure that they would not be overwhelmed with the volume of new mortgages and mortgage refinances. Though, the industry seemed to have a bit of relief as rates increased slightly before the end of last week.
If mortgage rates were to dip again, another influx of refinances could cause trouble for already overwhelmed lenders.
To learn more about the backlog of refinances that lenders are dealing with, click here.