Mortgage Daily Logo

Q2 Origination Outlook Upped

Mortgage News

Mortgage bankers raised their expectations for second-quarter originations as the outlook for refinances was boosted by nearly a quarter. But the projection might be trimmed in the next forecast given a recent surge in rates.

Home-loan production is predicted to come in at $318 billion in the first quarter then ease to $305 billion in the second quarter.

Last month’s outlook had fundings tumbling from $320 billion to $262 billion.

The forecast came Friday from the Mortgage Bankers Association, which sees fundings falling to $225 billion in the third quarter and $220 billion in the fourth quarter.

Behind the strengthened second-quarter outlook were refinances, which are projected to be $242 billion in the first quarter and $198 billion in the second quarter. Last month’s report had first-quarter refinance activity at $243 billion and second-quarter business at just $160 billion.

Purchase production is predicted to grow from $76 billion this quarter to $107 billion in the second quarter.

Refinance share is expected to go from a little more than three quarters during the first three months of 2012 to a less than two thirds in the second quarter. By the fourth quarter, refinance share is expected to tumble to less than half.

MBA might pare back its refinance numbers in next month’s forecast based on recently rising rates.

Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 3.92 percent, up from 3.88 percent a week earlier. Treasury market activity suggests that mortgage rates might be another 15 basis points higher in next week’s report.

The share of originations that will be adjustable-rate mortgages is projected to rise from 4 percent in the first quarter to 5 percent next quarter and 6 percent in the second half of this year.

For all of 2012, MBA has residential originations falling to $1.068 trillion this year from $1.262 trillion in 2011. Next year’s business is expected to amount to $1.022 trillion.

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