MBA Forecast for Economy: Lookin’ Good! – NMP Skip to main content

MBA Forecast for Economy: Lookin’ Good!

Feb 17, 2017
The Mortgage Bankers Association (MBA) has looked into the future, and they are not complaining

The Mortgage Bankers Association (MBA) has looked into the future, and they are not complaining.
 
"We're expecting steady, modest growth in the U.S. economy," said MBA Vice President of Research & Economics Lynn Fisher yesterday at the MBA National Mortgage Servicing Conference & Expo. "We're seeing real economic growth in a number of indicators."
 
Fisher noted that as federal unemployment rates decline, employers may find difficulty in attracting workers to meet specific skill-sets. "This in turn is going to drive up wages," she said. "Over the next two years, unemployment will fall to around 4.5 percent, suggesting further tightening on the labor front."
 
Fisher also observed that the Federal Reserve is expected to raise the federal funds rate at least two more times this year, with the first increase mostly likely coming by June. The MBA also predicts the 30-year fixed rate will reach 4.7 percent by the fourth quarter while home prices increase by 4.28 percent and new home sales rise by 10.1 percent.
 
Fisher added that the Millennials and minority communities will be fueling new housing demand in the near future. "If you fast-forward to 2019-2020, this cohort is going to be ready for homeownership," she said. "We're going to build into this—it's a big group—but it's going to take some time." 
About the author
Published
Feb 17, 2017
New Study Finds UWM's 'All-In' Triggered Industrywide Pricing Spillovers

Research shows wholesale competitors responded to the 2021 Rocket ban by lowering mortgage rates,

Jul 15, 2026
First Major Housing Reform In Decades Becomes Law Without Trump's Signature

Bipartisan ROAD to Housing Act advances supply, construction, and mortgage reforms despite White House protest

Jul 10, 2026
Mortgage Star Conference Honors Women Shaping The Future Of Mortgage Leadership

MWLC honors leaders driving innovation, mentorship, and growth across the mortgage industry

Jul 09, 2026
June Jobs Report Improves Mortgage Rate Outlook

Slower hiring strengthens bonds and eases concerns over additional Fed tightening

Jul 02, 2026
NEXA Founder Mike Kortas Launches evoLend To Help Originators Retain Borrowers

New Fannie Mae-, Freddie Mac- and Ginnie Mae-approved mortgage servicer aims to keep originators connected to borrowers through servicing data, payoff visibility and retention tools

Jul 02, 2026
President Trump Cancels 21st Century ROAD To Housing Act

Trump cancels signing the bipartisan housing bill, leaving affordability package in limbo

Jun 24, 2026