Mortgage loan originators will see home-loan business jump by a third during the final quarter of this year based on the latest origination forecast. The rosy outlook is being prompted by a spike in refinance transactions.
Fannie Mae has residential production from all U.S. lenders coming in at $363 billion this quarter then jumping to $484 billion in the fourth quarter, according to its September housing forecast.
The latest outlook is somewhat of flip flop from last month, when the Washington, D.C.-based firm predicted fourth-quarter production would fall to $340 billion from $408 billion.
Second-quarter volume was $349 billion.
Fannie said refinances are expected to account for 64 percent of third-quarter fundings then jump to a 76 percent share by the final quarter.
For the entire year, the secondary lender sees originations reaching $1.499 trillion, well short of $1.922 trillion last year but better than the 2011 estimate of $1.215 trillion.
Total mortgage debt outstanding is forecasted to fall to $10.639 trillion this quarter from $10.706 trillion three months earlier. First liens accounted for $9.637 trillion of the latest total.
