The country’s mortgage bankers have grown modestly more optimistic about the projected volume of refinances during the current quarter.
Total single-family loan originations, including purchase financing and refinancing,
are expected to reach $463 billion during the second quarter.
Business is then forecasted to retreat to $424 billion during the following quarter and $348 billion in the final-three months of this year.
The Mortgage Bankers Association, which made the predictions in its
MBA Mortgage Finance Forecast, raised the current quarter’s projection from $459 billion expected in its April outlook.
The origination of loans to finance a home purchase is expected to account for $316 billion of this quarter’s activity and $312 billion of third-quarter volume.
Refinance production is predicted to fall from $147 billion in the second quarter to $112 billion three months later. MBA lifted the current-quarter outlook from $143 billion last month.
Full-year overall originations are expected to go from $1.596 trillion this year to $1.588 trillion in 2018 and $1.245 trillion the following year. The 2017 outlook inched up from $1.592 trillion predicted in April.
The trade group has purchase financing climbing from $1.081 trillion in 2017 to $1.178 trillion next year and $1.245 trillion in 2019.
Refinances, meanwhile, are forecasted to fall from $0.515 trillion during the current year to $0.410 trillion in 2018 and $0.395 trillion the following year. The 2017 refinance projection was lifted from $0.511 trillion in the last outlook.
Refinance share is expected to thin from 32 percent in 2017 to 26 percent the following year and 24 percent in 2019.
MBA has mortgages outstanding expanding from $9.670 trillion in 2016 to $10.041 trillion this year, $10.437 trillion in 2018 and $10.806 trillion one year later.
