Get Your Mortgage Rate Quote in Just 30 Seconds

Mortgage rates change every day, and your rate will vary based on your location, finances, and other factors. Get your FREE customized rate comparison below.

U.S. Originations to Double

U.S. Originations to DoubleFreddie forecasts Q3 production of $890 billion, up from Q1’s $420 billion

May 20, 2009

By staff

A surge in conventional activity pushed quarterly U.S. originations higher, but an increase in government business is expected to lead an annual increase. Third-quarter residential originations are expected to double from the first quarter.Residential originations by U.S. lenders were an estimated $420 billion during the first quarter, Freddie Mac reported in its Economic and Housing Market Outlook today. Production picked up from $294 billion in the prior quarter but was lower than $486 billion a year earlier.

First-quarter conventional originations of $330 million were 57 percent higher than in the fourth quarter, while FHA and VA volume was up just 7 percent.

Freddie projects total U.S. originations to soar to $730 billion this quarter and peak at $890 billion in the third quarter.

During all of 2009, originations are forecasted to hit $2.7 trillion, surging from last year’s $1.7 trillion. The forecast is just slightly higher than last month’s prediction. Conventional activity is projected to rise to $2.2 trillion this year from $1.4 trillion, while government activity will increase to $0.5 trillion from $0.3 trillion in 2008.

Next’s year’s production is projected at $2.175 trillion.

The 30-year fixed-rate mortgage, which averaged 4.86 percent last week in Freddie’s rate survey, is expected to average 4.8 percent in the second quarter, edge up to 5.1 percent by yearend and climb to 5.9 percent by the end of 2010.

next story

back to current headlines

Popular posts

7 Refinance Strategies
7 Refinance Strategies

Refinance to a lower interest rate: If interest rates have dropped since you took out your original mortgage, refinancing to a lower rate can help you save money on your monthly payments and reduce the overall cost of your loan. Refinance to a shorter loan term:...

7 Refinance Strategies
Is Refinancing With Your Present Lender Preferable?

Do Not Accept the First Refinancing Offer You Receive Homeowners should not accept the first refinancing rate provided to them. This is particularly important if you are applying with your existing lender. Some mortgage lenders have mechanisms in place that prioritize...


Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

Fannie Mae Profile

Fannie Mae Profile

Last Updated December 27, 2018 7:38 PM Central   full list | other directories | bank search | SEC...