The volume of loans used to finance a home purchase is expected to see a 60 percent quarter-over-quarter surge as refinances drop.
Residential loan originators are forecasted to generate $349 billion in mortgage production during the first-three months of this year.
Business is then expected to jump to $433 billion in the second quarter then decline to $419 billion during the following three months.
Fannie Mae made the predictions in its Housing Forecast: March 2017.
Purchase financing is expected to account for $189 billion of first-quarter originations. Purchase-money lending is then projected to surge to $303 billion three months later.
Refinance production is pegged at $160 billion in the current quarter and $131 billion in the second quarter.
For all of 2017, Fannie predicts that total mortgage originations
will be $1.567 trillion, while next year’s business is forecasted at $1.528 trillion.
Purchase financing is expected to rise from $1.057 trillion this year to $1.147 trillion in 2018.
Fannie has refinance production retreating from $0.510 trillion in 2017 to $0.381 trillion next year.
Refinance share is forecasted to thin from one-third during the current year to a quarter in the following 12-month period.
