The mortgage industry tapped out due to capacity issues, no one in mortgage said "man we need to staff up in case we get hit with a global pandemic" a year ago, and as a result no one is staffed for this.

Banks are over capacity on refinances, and investors are not willing to lend lower than what they currently are.

The half dozen big time individual investors that I know in Los Angeles, also, own large management companies that can profit off of excess capacity by managing other owners(especially institutional owners) assets.I would not be surprised if most management companies also owned or were actively trying to acquire assets, too.But, if you are an insurance company or pension trust administrator, you would probably not want to be managing the day to day operations of multi-family even if it makes a great addition to the trust portfolio.It depends of the specific scenario of the owner/s

Processing refinance loan applications has hit capacity.

Rates have not been "artificially" increased, they have been NATURALLY increased due to capacity issues.

Banks might also be not working will full capacity and that may affect closings too ?

Then the question is, how much excess capacity exists in the system and is it located where demand will be. 

I requested a Redemption of my funds from fundrise back in January and they won't release them.Here is what they said:Fundrise Advisors, in our capacity as Manager of the eREITs and eFunds, has determined that it is necessary at this time to suspend the processing and fulfillment of redemption requests.While under normal market conditions, we seek to provide investors with the ability to redeem their investments on a regular basis, during times of financial crisis or extreme uncertainty, it is absolutely critical that we suspend redemptions in order to protect the interests of all our investors.As Manager, we have an obligation to make decisions based upon what is best for the entire Fundrise investor community and must always put the priorities of the whole above any one individual.Fundamentally, Fundrise investors own real property, which is simply not liquid. 

And they wont have the capacity or ability to buy either.. that's the big fallacy of crashing markets hey we are going to wait to pick up deals well unless you have a boat load of cash .. your seeing it play out right now non owner occ loans are either GONE altogether or very tough to get. 

With the market how it is you may still have limited capacity to negotiate with the seller if you are looking at properties listed on the MLS though, unless they are significantly overpriced to begin with.See below for some notes I had written for my own purposes when I was researching Lynn.