| Fannie Economist Says $4 Trillion Industry Production Possible in 2003
Record year in mortgage originations June 18, 2003 By MortgageDaily.com staff |
| The nation’s largest secondary lender has forecasted a steady coast toward a record year for mortgage originations.
Fannie Mae’s monthly economic outlook for June, which can be found on its website, notes several factors that will continue to push the mortgage boom. Marketplace conditions will drive mortgage originations to $3.7 trillion for the calendar year, according to the outlook, prepared by Fannie chief economist David W. Berson. According to Reuters news service, Berson later suggested that the boom could hit $4 trillion if favorable conditions lined up. The Mortgage Bankers Association of America’s (MBA) recently forecast a record-breaking $3 trillion in mortgage production for 2003. In the monthly outlook, Berson predicts that home sales will continue the record pace they’ve achieved so far this year, reaching a new pinnacle for 2003. Berson also predicts that the economic growth will accelerate later this year, due to economic stimulus, the outlook said. In his weekly commentary, Berson pointed out several reasons, other than the low rates, that homeowners are jumping on to the refinancing bandwagon. Compared to refi boomlets in 80s and 90s, this refinancing surge has the added advantages of technology and reduced documentation, according to Berson’s commentary. The process is faster and cheaper, making it more appealing to borrowers, Berson said in the statement. Estimated refis for 2003? Thirty-five percent of outstanding single-family mortgage debt, according to the weekly commentary, or $2.6 trillion. In its forecast, MBA said refinancings are expected to contribute 65 percent of all originations for the year. |
