MBA Updated Economic and Mortgage Forecasts
A few highlights: • Total mortgage originations are expected to decrease to $2.61T in 2022, as more of the activity shifts to the purchase market.
– Refinance originations are expected to drop to $870B.
– Purchase originations are forecast to eclipse 2021’s record high and reach $1.74T, backed by strong housing demand and rising home prices and sales.
• Home-price growth is forecast to moderate to 5.1%.
• Mortgage rates are expected to rise throughout the year and reach 4.0% by December 2022.
• Economic growth is forecast to be at 4.0% in 2022, with the unemployment rate declining to 3.5% by the end of the year.