The nation’s mortgage bankers lopped $15 billion off expected purchase financing originations for this year, cutting into the overall annual outlook.
The Mortgage Finance Forecast estimates that first-quarter originations, including refinancing and purchase financing, from all U.S. lenders were $226 billion.
Business is expected to pick up in the second quarter and come in at $267 billion then continue rising in the third quarter to $298 billion.
The Mortgage Bankers Association, which made the projections, lowered its second-quarter estimate from $272 billion expected in its March outlook.
Purchase originations are expected to climb from $115 billion to $158 billion in the second quarter then jump to $195 billion during the following three months. The second-quarter projection was cut from $163 billion in the previous report.
Refinances will fall from $111 billion in the first quarter to $109 billion three months later and $103 billion in the third quarter.
From Jan. 1, 2014 through Dec. 31, 2014, MBA expects total residential loan originations to amount to $1.065 trillion, down from its prior projection of $1.080 trillion.
No change was made to the 2015 forecast of $1.219 trillion.
The trade group reduced its prediction for 2014 purchase production to $0.646 trillion from the $0.661 trillion forecasted last month.
No change was made to the $0.808 trillion forecast for next year’s purchase originations.
Refinance production is expected to slip from $0.419 trillion this year to $0.411 trillion in 2015.
Refinance share is predicted to go from 39 percent in 2014 to 34 percent next year.
