MBA Sees Slow Growth in Purchase Originations, Drop in Refinancing, Weak Overall Economic Growth in 2012

Chicago, IL – October 12, 2011 – (RealEstateRama) — The Mortgage Bankers Association (MBA) expects to see mortgage originations fall from an estimated $1.2 trillion in 2011 to $900 billion in 2012. The drop will be driven by a significant decline in refinance originations, while purchase originations will increase only slightly. The economy will see another year of anemic growth in 2012, and then will grow somewhat faster in 2013. Refinance originations are expected to fall despite low mortgage rates as economic uncertainty lingers and fewer eligible borrowers remain.