MBA Forecast: Purchase Originations to Remain Healthy as Fed Hikes Rates

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Posted To: MND NewsWire

Purchase mortgage originations are expected to increase a bit in 2019, but not by enough to offset the continuing decline in refinancing. A forecast from the Mortgage Bankers Association (MBA), released Tuesday at its 2018 Annual Convention and Expo, predicts a 4.2 percent gain over the 2018 volume of purchase mortgages next year to a total of $1.24 trillion. However, the association expects refinancing activity to fall 12.3 percent to $395 billion. The result will be a net decrease of about $1 trillion in total originations to $1.63 trillion. Business should pick up in 2020; total volume is expected to be $1.68 trillion. Purchase originations are expected to increase to $1.27 trillion and even refinancing will gain ground, rising to $410 billion. Mike Fratantoni, MBA chief economist and senior…(read more)

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