Mortgage Daily Logo

Rebound Forecasted for 2013

Mortgage News

The outlook for first-half 2011 originations by all residential lenders has been reduced more than $60 billion by the Federal National Mortgage Association. But a rebound is projected for 2013. The forecast has nearly one-in-five borrowers opting for an adjustable-rate mortgage by the end of next year.

First-quarter home-loan fundings by all U.S. lenders will tumble to $264 billion from the fourth-quarter 2010’s estimated $448 billion in originations, Fannie Mae forecasted in its January 2011 Housing Forecast.

Fannie cut its first-quarter forecast from $288 billion predicted last month, while its second-quarter 2011 forecast was lowered to $260 billion from $302 billion projected last month.

Refinance share is expected to drop to 59 percent from 73 percent in the fourth quarter then plummet to 31 percent by the second quarter of this year.

The ARM share of new applications will climb from the fourth quarter’s 5 percent to 8 percent then jump to 12 percent by the second quarter, the report said. By the end of 2012, Fannie has ARM share at 18 percent.

The outlook for full-year 2011 production was reduced to $1.035 trillion from last month’s forecast of $1.132 trillion. The following year, Fannie has $1.137 trillion in volume projected.

Production is expected to jump to $1.408 trillion in 2013.

U.S. borrowers continued to cut their debt. Mortgages outstanding ended last year at an estimated $10.575 trillion, falling from $10.861 trillion at the end of 2009. The total is expected to fall to $10.443 trillion this quarter and bottom out at $10.246 trillion in the first-quarter 2012.

First liens accounted for $9.483 trillion of the first quarter outstanding. First liens declined from $9.603 trillion at the end of last month and $9.829 trillion at the end of 2009.

Related Posts

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Third-Quarter 2012 Mortgage Litigation Index

Lawsuits involving excessive fees, servicing fees and loan fees beyond state maximums. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Fannie Mae and Freddie Mac Orangeburg County, Richland County, South...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Net Branch Lawsuits

Litigation involving net branch operations. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story PHH Mortgage Corp. Mathews Supreme Court of Virginia na Court held that the term "branch office" includes not only...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Whistleblower Lawsuits

Litigation related to loan servicing, including escrow issues, transfer of servicing and servicing borrowers in bankruptcy and foreclosure.   Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Bank of...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming paperwork has been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and furniture need to...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand-new mortgage loan can be a difficult task, especially for first-time homeowners.   After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first...

Newsletter

Don’t worry, we don’t spam