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SCME launches non-prime division

National Mortgage Professional
Sep 18, 2005

MBA releases new mortgage finance forecastMortgagePress.comMortgage originations,interest rate The Mortgage Bankers Association has released its monthly update of its Mortgage Finance Forecast. MBA is projecting $2.4 trillion in mortgage originations in 2004, down from its previous estimate of $2.6 trillion. MBA said that a rising interest rate environment will cut into refinancings in 2004, but home purchases will remain strong. MBA now projects that the 10-year Treasury rate will increase from four percent in the first quarter to 4.9 percent in the fourth quarter, averaging 4.5 percent for the year. Mortgage rates will increase correspondingly; the average 30-year fixed mortgage rate will increase to 6.4 percent in the fourth quarter, from 5.6 percent in the first quarter. While higher interest rates are expected to cause a slight moderation in overall home sales and residential building in the months ahead, MBA is forecasting a record number of new home sales and only a slight decline in existing home sales. MBA expects that the fall in refinance originations will be faster than expected because of a more rapid increase in interest rates than previously forecasted. Refinancings will total $1 trillion, down from the previously forecasted $1.2 trillion. Mortgages for purchasing homes will make up 57 percent of total originations, or $1.4 trillion. The volume of adjustable-rate mortgages will likely rise as more households choose to use ARMs to manage affordability. Approximately 33 percent of the total number of conventional purchase loans will be ARMs.
Published
Sep 18, 2005
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