Mortgage Bankers Trim 2017 Refinance Outlook

written by
1 · 23 · 17

For the third month in a row, the nation’s mortgage bankers have reduced the volume of refinance production they expect to generate this year.

Overall loan originations, including purchase financing
and refinancing, are predicted to reach $344 billion during the first-three months of this year.

Home lending is then expected to climb to $430 billion in the second quarter and ascend further to $437 billion during the following three months.

Those projections were made in the Mortgage Finance Forecast from the Mortgage Bankers Association.

The first-quarter forecast was lowered from $352 billion expected in the December 2016 outlook.

The trade group predicts that purchase financing will climb from $212 billion in the first quarter to $310 billion three months later.

Current-quarter expected refinances
were cut to $132 billion from $140 billion in last month’s outlook, while the second-quarter forecast was left at $120 billion.

MBA has full-year originations climbing from $1.563 trillion this year to $1.588 trillion in 2018 and $1.640 trillion the following year.

The 2017 projection was reduced from $1.571 trillion in last month’s forecast.

Full-year 2017 purchase financing is predicted to rise from $1.092 trillion in 2017 to $1.178 trillion next year and $1.245 trillion in 2019.

Refinance production is expected to fall from $0.471 trillion this year to $0.410 trillion
in 2018 and $0.395 trillion a year later. The 2017 refinance forecast was reduced from $0.479 trillion in December’s report and has been cut each month since November.
The reduction came even though MBA made no changes to its expectations for 30-year fixed rates.

Washington-based MBA has refinance share falling from 30 percent in the current year to 26 percent in 2018 and 24 percent the following year.


Mortgage Daily Staff


Consectetur adipiscing elit dapibus, vulputate in donec tempor ultricies venenatis erat, aliquam posuere urna habitant.