MBA: Housing market has 'shifted into high gear'
The Mortgage Bankers Association has significantly hiked up its mortgage forecasts for this year after a strong spring buying season.
In 2014, total originations reached $1.12 trillion, according to a press release on the increased projections. The trade group estimates that figure will jump 23 percent to $1.35 trillion in 2015 and then likely fall to $1.26 trillion in 2016. Previously, the forecast for 2015 had been a 14 percent increase to $1.28 trillion. The housing market has “shifted into high gear” following recent surges in both home purchases and mortgage refinances, the MBA explained. The trade group noted that pull-through rates are increasing because of small, but significant, changes in both borrower and lender behavior.
Purchase originations are expected to fuel the surges in total originations. These will hit $801 billion in 2015 and $885 billion in 2016, increases of $71 billion and $94 billion, respectively, over what the MBA had previously forecasted. The projection of a robust housing market through the rest of this year and into 2016 comes following a wave of positive news out of the sector, regarding sales and sentiments about the future.
Homebuilder confidence hit its highest level since 2005 in July, according to the National Association of Home Builders/Wells Fargo Housing Market Index, which measures builders’ feelings about the direction the sector is headed in. Meanwhile, in June existing-home sales reached their highest pace in over eight years, the National Association of Realtors found. Existing-home sales jumped 3.2 percent to a seasonally adjusted annual rate of 5.49 million in June.
Recent news out of the housing market has been good, and now experts believe that trend will continue for months to come, a sign that the sector’s recovery is on track.
By: Equity National July 28, 2015 Closing, Title