Mortgage Origination Outlook Boosted By $249 Bil

During the fourth quarter, $427 billion in single-family loans are expected to be originated by U.S. home lenders. The total includes loans to finance a home purchase and refinances.

Business is then expected to tumble to $359 billion in the first-three months of next year then rise to $476 billion during the second-quarter 2018.

Fannie Mae made the predictions in its Housing Forecast: October 2017.

The secondary lender raised its current-quarter outlook from $377 billion expected last month. The first-quarter 2018 forecast grew from $322 billion, and the following period’s projection was up from $433 billion.

The outlook for purchase financing during the final-three months of 2017 was nudged up to $268 billion from $263 billion a month earlier. Purchase-money volume during the first-three months of next year is now expected
to reach $213 billion versus $209 billion in the prior report.

Expected fourth-quarter 2017 refinance originations increased to $159 billion from $113 billion last month, and first-quarter 2018 refinances are projected to reach $147 billion, more than $113 billion previously predicted.

Fannie has total originations for all of this year coming in at $1.788 trillion, more than $1.679 trillion previously predicted. Next year’s outlook jumped to $1.718 trillion from $1.578 trillion.

The estimate of 2016’s purchase financing was reduced to $1.052 trillion from $1.061 trillion in last month’s forecast. This year’s purchase forecast, though, climbed to $1.126 trillion from $1.078 trillion, and the 2018 purchase outlook grew to $1.182 trillion from $1.163 trillion.

Last year’s estimated refinance production increased to $1.000 trillion from $0.991 trillion. The 2017 refinance outlook increased to $0.662 trillion from $0.601trillion, while next year’s expected volume rose to $0.536 trillion from $0.415 trillion.