Mortgage Daily Logo

2011 Production Projected to Fall

Mortgage News

Depending on who you ask, next year’s residential originations could vary by $400 billion. But one thing the experts agree on is that business during 2011 will be worse than this year.

Next year’s home-loan originations are expected to come in between $0.904 trillion and $0.991 trillion, according to the 2011 – 2015 U.S. Total Mortgage Volume Forecast from iEmergent. Based on the number of loans, iEmergent predicts between 4.8 million and 5.25 million loans.

In June, the Des Moines, Iowa-based company projected that residential volume during 2010 would range from 5.62 million to 6.19 million loans for between $1.03 trillion and $1.14 trillion.

“iEmergent projects that U.S. residential mortgage lending volume will fall below the $1 trillion mark in 2011, becoming the fifth year of what is emerging as a ‘lost decade’ for the housing and home financing industries, with slow growth also expected for 2012-2015,” the company said in today’s statement.

iEmergent’s outlook is much weaker than at the Mortgage Bankers Association, which forecasted that U.S. production will come in at $1.401 trillion this year then fall to $0.996 trillion in 2011.

Freddie Mac has volume falling from $1.500 trillion this year to $1.3 trillion, while Fannie Mae predicts 2010 volume will be $1.497 trillion then drop to $1.208 trillion next year.

iEmergent projected that 2011’s activity will include 2.62 million purchase loans for $0.491 trillion. Refinances are expected to range from 4.80 million loans for $0.904 trillion to 5.25 million loans for $0.991 trillion.

The report indicated that the pool of prospective borrowers has declined by 38 percent as a result of the 2007-2010 economic collapse.

“The home financing industry is now caught in a serious ‘demand trap,’ a negative feedback loop of economic and behavioral deflation,” iEmergent President Dennis Hedlund said in the statement. “Similar to the liquidity trap that spawned it, mortgage rates have reached unprecedented low levels, yet purchase money mortgage demand languishes as prime home buyers are trapped by cumulative downward economic and job pressures.”

Related Posts

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

There is No Such Thing as a Free House …

Over the past several years, those who service loans in the State of Washington(1) have seen a dramatic rise in the number of lawsuits in which delinquent borrowers seek to quiet title to their homes on the grounds that lenders are barred from foreclosing based on...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Mortgage Servicer Portfolios

servicing news | mortgages outstanding statistics | foreclosure news   Servicing Portfolios as of 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 Residential Servicing Portfolios by Servicer Last Updated December 14, 2018...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Fannie Mae Profile

Last Updated December 27, 2018 7:38 PM Central   full list | other directories | bank search | SEC filings | execs | m&a | production   Government Takes Over Fannie, Freddie Sept. 8, 2008 The government has seized control of Fannie Mae and Freddie Mac. The move --...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Freddie Mac Profile

Government Takes Over Fannie, Freddie Sept. 8, 2008 The government has seized control of Fannie Mae and Freddie Mac. The move -- which is likely to push mortgage rates lower and provide a sense of stability for the more than 10,000 employees at both companies -- is a...

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 home closing documents have 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...

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 mortgage...

Newsletter

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