MBA Lowers 2014 Mortgage Originations Forecast
January 14, 2014
The Mortgage Bankers Association (MBA) lowered its forecast for mortgage originations in 2014 by $57 billion to $1.12 trillion for the year, based on declining mortgage application activity and increasing interest rates.
“Despite an economic outlook of steady growth and a recovering job market, mortgage applications have been decreasing – likely due to a combination of rising rates and regulatory implementation, specifically the new Qualified Mortgage Rule,” said Mike Fratantoni, chief economist for MBA. “As a result, we have lowered our expectations for both purchase and refinance originations in the first half of 2014.”
The forecast for purchase originations has been lowered to $677 billion for 2014, compared to $711 billion forecast previously. Compared to 2013, purchase originations are expected to increase by 3.8 percent. Meanwhile, refinance originations were revised lower as well and are now expected to be $440 billion in 2014. Previously, refinances were estimated to total $463 billion. The updated refinance total is around 60 percent lower than 2013 refinance originations.