As market conditions improve, many mortgage companies are turning to debt rather than traditional sources of capital such as equity to fund growth. Strs Glbl Flt Rt Stg is raising $20 million in debt and is expected to use the funds to refinance its existing debt. The decision to take on debt is a sign that market conditions are improving, however, analysts have speculated that a full recovery may take longer than expected.
Despite the difficulty of the pandemic-influenced landscape, mortgage companies have been able to take advantage of high rates and have seen tremendous growth as a result. Pre-pandemic volume was already high but has increased even further, thanks to a decreasing unemployment rate, increased consumer confidence, and aggressive monetary policy. This has enabled mortgage companies to add more staff, work on technology, and add new products.
Below are the most important elements of the text:
– Mortgage companies are turning to debt rather than equity to raise funds
– A sign that market conditions are improving
– Recovery may take longer than expected
– Mortgage companies have taken advantage of high rates to see tremendous growth
– Decreasing unemployment, increased consumer confidence, and aggressive monetary policy are aiding in growth
You can read this full article at: https://www.housingwire.com/articles/mortgage-companies-issue-debt-heres-why-thats-a-positive-sign-to-the-market/(subscription required)
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