|Title: ||MBA Lowers 2014 Mortgage Originations Forecast|
WASHINGTON, D.C. (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. Purchase originations are now expected to be $677 billion for 2014, compared to $711 billion forecast
previously. Compared to 2013, purchase originations are expected to increase by 3.8 percent.”
Refinance originations were revised lower as well and are now expected to be $440 billion in 2014, compared to $463 billion
estimated previously. The updated refinance total is around 60 percent lower than 2013 refinance originations. To view the
revised forecast, click here .
The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry
that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the
association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand
homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and
fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety
of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies,
mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending
field. For additional information, visit MBA's Web site: www.mba.org.