Tuesday, November 15, 2016
MBA Forecasts Over One Trillion Dollars in Originations in 2017
The Mortgage Bankers Association (MBA) forecasts $1.10 trillion in purchase mortgage originations during calendar year 2017, an 11 percent increase from 2016. In contrast, MBA anticipates refinance originations will decrease by 40 percent, resulting in refinance mortgage originations of $529 billion. In total, mortgage originations are expected to decrease to $1.63 trillion in 2017 from $1.89 trillion in 2016.
For 2018, MBA is forecasting purchase originations of $1.18 trillion and refinance originations of $410 billion for a total of $1.59 trillion.
"We are projecting that home purchase originations will increase further in 2017, building on an estimated 10 percent increase in 2016. Strong household formation coupled with further job growth, rising wages, and continuing home price appreciation will drive strong growth in purchase originations in the coming years," said Michael Fratantoni, MBA's Chief Economist and Senior Vice President for Research and Industry Technology.