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| First-time homebuyers are projected to account for more than $100 billion of this year’s residential originations, according to new report that warns of a possible year-end spike in production.
During 2009, 955,000 loans will be closed for first-time home buyers, according to the 2009 First Time Home Buyer loan volume forecast from iEmergent. The dollar volume of originations is projected at $133 billion. The findings were determined from a wide range of local data as well as other factors like unemployment, foreclosure rates, home affordability and available inventory trends. First-time business is expected to account for around one-fifth of all purchase production this year — suggesting overall purchase originations will come in around $700 billion. “iEmergent anticipates a higher projection for FTHB transactions if the tax credit for first time buyers is expanded,” the news release stated. “In addition, if the tax credit is expanded and the deadline for using this credit is not extended beyond December 31, 2009, lenders should be prepared for a sizeable spike in volume prior to year-end.” |
