The forecast for the origination of loans to finance single-family home purchases has been raised for both this year and next year.
From April 1 through June 30 of this year, overall home lending volume — including purchases and refinances — is expected to total $484 billion.
Business is then expected to fall to $446 billion during the third quarter and tumble further, to $402 billion, in the final-three months of 2018.
Fannie Mae, which made the predictions in its Housing Forecast: June 2018, increased its expectations from last month’s outlook, when originations were projected to fall from $468 billion in the second quarter to $433 billion three months later and $393 billion in the fourth quarter.
The secondary lender raised its current-quarter
purchase financing forecast to $355 billion from $340 billion, and the third-quarter outlook increased to $344 billion from $334 billion.
Refinance volume is expected to fall from $130 billion in the second quarter to $102 billion three months later.
Fannie predicts that overall originations will be $1.709 trillion this year, more than the $1.687 trillion previously forecasted, while the 2019 outlook increased to $1.708 trillion from $1.670 trillion.
The Washington-based company lifted its 2018 outlook for purchase financing to $1.228 trillion from $1.186 trillion. Next year’s purchase outlook rose to $1.271 trillion from $1.232 trillion.
Refinance production is expected to fall from $0.481 trillion this year to $0.438 trillion in 2019.
Refinance share is projected to thin from 28 percent in the current year to 26 percent next year.
