The Mortgage Bankers Association (MBA) is predicting a
banner year for purchase mortgage originations.
The Association’s chief
economist and senior vice president Mike Fratantoni told attendees at MBA’s Spring
Conference and Expo that those originations are on track to grow 16.4 percent
this year, setting a probable new record at $1.67 trillion. Refinancing will,
however, drag overall origination volume down from last year’s record $3.83
trillion to $3.28 trillion, a 14 percent decline. That would still be the third
highest volume ever. 
“The housing market is incredibly strong this year, with
robust housing demand in nearly every part of the country, driven by the
improving economy, households seeking more indoor and outdoor space,
millennials reaching their prime homebuying years, and still low mortgage
rates,” Fratantoni said.  “A lack of
supply is the biggest hurdle to an even larger increase in home sales. The
widening imbalance of supply and demand is driving up home-price growth and
eroding affordability – especially for entry-level buyers.”

 

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