Mortgage Daily

Published On: July 18, 2012

The latest boost to forecasted mortgage originations means that this year will blow past 2011 to rival 2010. All of the improvement was with refinance activity — which is now expected to be the second-highest on record during the last six years. The outlook for purchase production, however, was cut to the lowest level in more than a decade.

Total residential loan originations are projected to reach $1.650 billion during 2012.

That’s a $200 billion increase from last month’s outlook, when this year’s industry-wide production was projected to reach $1.450 trillion.

Last year’s total home-loan fundings were $1.400 trillion, while Freddie Mac puts next year’s forecast at $1.070 trillion in its July 2012 Economic and Housing Market Outlook.

The strength in the latest 2012 forecast was in refinances, which Freddie now expects will reach $1.221 trillion compared to $0.986 trillion projected in June. The only other year since 2007 when refinances were higher was 2008 — when refinance production amounted to $1.360 trillion.

But this year’s projection for purchase production was cut to $0.429 trillion from $0.464 trillion in the June outlook. Home-purchase financing has not been that low since at least 2001.

Both government and conventional forecasts were lifted, with government production now predicted by Freddie Mac to reach $0.375 trillion versus $0.300 trillion expected last month and the outlook for conventional business raised to $1.275 trillion from $1.150 trillion.

Third-quarter overall originations are forecasted to increase to $450 billion from $420 billion in the second quarter. The prior forecast was for volume to rise to $370 billion from $365 billion.

The latest outlook is for refinance originations to climb to $333 billion in the third quarter from $311 billion three months earlier, while purchase production is expected to grow to $117 billion from $109 billion.

FREE CALCULATORS TO HELP YOU SUCCEED
Tools for Your Next Big Decision.

Amortization Calculator

Affordability Calculator

Mortgage Calculator

Refinance Calculator

FHA Mortgage Calculator

VA Mortgage Calculator

Real Estate Calculator

Tags

Pre-Approval Resources!

Making well educated decions in a matter of minutes and stay up to date on the latest news Mortgage Daily has to offer. Read our latest articles to stay up to date on what’s going on…

Resource Center

Since 1998, Mortgage Daily has helped millions of people such as yourself navigate the complicated hurdles of the mortgage industry. See our popular topics below, search our website. With over 300,000 articles, we are guaranteed to have something for you.

Your mortgages approval starts here.

Add 1-2 sentence here. Add 1-2 sentence here. Add 1-2 sentence here. Add 1-2 sentence here. Add 1-2 sentence here.

Stay Up To Date with Today’s Latest Rates

Mortgage

Today’s rates starting at

4.63%

5/1 ARM
$200,000 LOAN

Home Refinance

Today’s rates starting at

4.75%

30 YEAR FIXED
$200,000 LOAN

Home Equity

Today’s rates starting at

3.99%

3 YEAR
$200,000 LOAN

HELOC

Today’s rates starting at

2.24%

30 YEAR FIXED
$200,000 LOAN