{"id":6448,"date":"2022-04-18T15:07:04","date_gmt":"2022-04-18T20:07:04","guid":{"rendered":"https:\/\/nwfl4sale.com\/bankers-lower-mortgage-demand-outlook-for-2022\/"},"modified":"2022-04-18T15:07:04","modified_gmt":"2022-04-18T20:07:04","slug":"bankers-lower-mortgage-demand-outlook-for-2022","status":"publish","type":"post","link":"https:\/\/nwfl4sale.com\/bankers-lower-mortgage-demand-outlook-for-2022\/","title":{"rendered":"Bankers Lower Mortgage Demand Outlook for 2022"},"content":{"rendered":"
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MBA: Overall mortgage originations will fall 35.5% from 2021 to $2.58T this year but higher home prices will help fuel a smaller 4% annual growth in volume.<\/span><\/span><\/span><\/p>\n<\/div>\n WASHINGTON \u2013 With swiftly rising mortgage rates making homeownership more expensive to achieve, the Mortgage Bankers Association (MBA) forecasts that overall mortgage originations will fall 35.5% from 2021 to $2.58 trillion this year.<\/span><\/span><\/span><\/p>\n MBA\u2019s previous forecast was for $2.61 trillion. MBA reports that refinance applications fell 5% last week from the previous week and 62% year-over-year. The refinance share of mortgage activity dropped to 37.1% of total applications from 38.8% the prior week. MBA expects refinances to decline 64% for 2022.<\/span><\/span><\/span><\/p>\n Meanwhile, the group expects purchase originations to rise to a record $1.72 trillion this year, down from its previous forecast of $1.77 trillion.<\/span><\/span><\/span><\/p>\n \u201cEven though existing sales volume will be slightly lower than last year, the continued growth in new home sales and the rapid rise in home prices should deliver a smaller, but solid, 4% annual growth in purchase origination volume,\u201d said MBA chief economist Michael Fratantoni.<\/span><\/span><\/span><\/p>\n Purchase applications edged up just 1% last week from the previous week but were down 6% from the same week a year ago. Adjustable-rate mortgages, which carry lower rates, accounted for 7.4% of applications last week, the highest level since June 2019.<\/span><\/span><\/span><\/p>\n MBA economist Joel Kan said, \u201cIn a promising sign of strong purchase demand amidst affordability challenges, both conventional and government purchase applications increased.\u201d<\/span>\u00a0<\/span><\/span><\/p>\n