Looking for a Real Estate Bounce in 2021? Consider Walker & Dunlop
The novel coronavirus pandemic sent shockwaves through the global economy -- including real estate. Between the recession and shutdown mandates, it got so bad for homeowners that Congress included mortgage forbearance as part of the CARES Act package passed in March. This presented a challenge to mortgage finance companies, which saw forbearance rates peak to nearly 9% of all mortgages at one point in early June.
Walker & Dunlop (NYSE: WD) weathered the pandemic better than many other mortgage finance companies. The reason? The company's laser focus on providing loans for multifamily units only. These loans were more stable than other real estate loans during the year.
This strategic positioning, coupled with mortgage rates hitting historically low levels, has helped Walker & Dunlop see stellar bottom-line growth in 2020 -- and the prospects for the company look good going into 2021.
Source Fool.com
