The Mortgage Bankers Association’s (MBA’s) November
2020 economic forecast ups the ante from its rosy October version. Its
revisions are due to the strong pace of home sales and low interest rates which
continue to fuel a refinancing boom. MBA has increased its prediction for total
mortgage originations from the $3.175 trillion estimate in October to $3.39 trillion.
This would be a 50 percent increase from the $2.25 trillion in total
originations in 2019, and the highest total since 2003. Refinancing, of course, is the driver behind these numbers.
By the end of the year MBA expects those originations to have increased by 91.5
percent year-over-year to $1.97 trillion, potentially the highest total since
2003. Purchasing volume has not been shoddy either. That total is expected to
be the highest since 2005 at $1.42 trillion, representing annual growth of 16
percent.

 

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