Mortgage Daily Logo

Origination Expectations Ease After Outlook Increased

Mortgage News

Following an increase in forecasted loan originations, expectations have eased somewhat for this year’s activity. Next year’s projection for refinancing has been raised at the expense of expected purchase financing.

The latest outlook for mortgage lending has loan originations falling from $442 billion in the third quarter to $396 billion during the final three months of 2013 and $317 in the first three months of next year.

Last month’s outlook had third-quarter production at $457 billion, fourth-quarter volume at $387 billion and first-quarter 2014 fundings at $308 billion.

The most recent predictions were made in Fannie Mae’s Housing Forecast: November 2013.

Refinance volume is expected to decline from $242 billion to $224 billion in the current quarter then fall to $169 billion in the first quarter of next year. Fannie previously had refinance originations going from $249 billion to $215 billion then dropping to $159 billion.

Purchase financing is estimated at $201 for the third quarter then expected to retreat to $172 billion in the following period and $148 billion in the first-quarter 2014. Fannie previously predicted that purchase volume would fall from $208 billion to $171 billion then drop to $149 billion in the first quarter of next year.

The outlook for full-year 2013 originations was trimmed to $1.822 trillion from $1.827 trillion in the last report. Next year’s forecast was unchanged at $1.358 trillion.

Last month, Fannie lifted its 2013 outlook by more than $80 billion, while next year’s forecast was raised by nearly $300 billion.

This year’s refinance projection inched up to $1.133 trillion from $1.132 trillion, and next year’s forecast increased to $0.562 trillion from $0.550 trillion.

But the 2013 purchase outlook fell to $0.689 trillion from $0.695 trillion, while expected 2014 volume was cut to $0.796 trillion from $0.808 trillion.

Fannie estimates that refinance share will move down from 62 percent in 2013 to just 41 percent next year.

The share of business that is expected to be adjustable-rate mortgages is 7 percent this year and 10 percent next year.

Out of $9.792 trillion in outstanding mortgages estimated for 2013, $9.075 trillion are expected to be first liens. Next year’s $9.928 trillion in total mortgages are expected to include $9.220 trillion in first liens.

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