The forecast has improved for the production of residential loans used by U.S. homebuyers to finance home purchases.
From mid-2016 through Sept. 30, overall home lending, including purchase-money lending and refinances, is expected to amount to $440 billion.
National mortgage production is then expected fall to $362 billion during
final three months of this year and decline further — to $306 billion in the first-quarter 2018.
Fannie Mae, which made the predictions in its Housing Forecast: July 2017, raised the third-quarter forecast from $423 billion expected in its last outlook report.
The outlook for purchase production is $307 billion in the third quarter and $262 billion in the fourth quarter.
The outlook for current-quarter refinances increased to $133 billion from $116 billion in the prior report, while the fourth quarter is still expected to deliver $100 billion in refinances.
During all 12 months of this year, Fannie expects overall originations to reach $1.649 trillion, more than the $1.624 trillion expected as of June. Next year’s total sits at $1.541 trillion, more than $1.533 trillion previously expected.
Full-year 2017 purchase production is projected at $1.083 trillion, more than $1.078 trillion previously predicted. Next year purchase outlook expanded to $1.160 trillion from $1.153 trillion.
Refinance production is expected to reach $0.566 trillion this year, more than $0.546 trillion previously expected. Fannie left this year’s refinance outlook at $0.381 trillion.
Refinance share is forecasted at 34 percent for 2017 and 25 percent for next year.
