As interest rates continue to rise, refinances are decreasing, merger and acquisition activity is picking up, and many mortgage lenders are struggling with a decrease in lending activity.

Last week, Freddie Mac reported mortgage rates dipped slightly, but only after nine weeks of consecutive increases, and rates still remain higher than last year’s levels.

And recent data from the Mortgage Bankers Association shows these increasing interest rates caused refinance applications to fall to their lowest level since September 2008.

However, United Wholesale Mortgage explained that mortgage brokers will be the least affected by these increasing interest rates.

There are several reasons for brokers feeling the rising rates less than other sectors of the mortgage market.

Brokers in general thrive in purchase markets, UWM President and CEO Mat Ishbia said in an interview with HousingWire. Ishbia pointed out that brokers typically do less refinances, and therefore the decrease in refi shares will be less likely to affect them.

Brokers are actually in a good position, Ishbia said. While rising rates aren’t good for anyone, they hurt brokers the least.

“Brick and mortgage shops are dying,” he said, explaining that many companies are going back to being brokers in order to keep their prices competitive as interest rates rise. Pipelines are thinner, so they’re looking at other options, he said of the traditional small mortgage shops.

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