Mortgage business in limbo as rates remain volatile

Mortgage business in limbo as rates remain volatile

Mortgage business in limbo as rates remain volatile
As a result of mortgage rates falling to all-time lows last week, the Mortgage Bankers Association announced a doubling of their previously released refi forecast for 2020. The previous prediction of just over $600 billion in mortgage balances refinances is now expected to be just north of $1.23 trillion. But with a sudden about-face in mortgage rates in recent days, these ambitious predictions may not pan out.

In total, the MBA was anticipating total mortgage originations to top $2.6 trillion this year, a 20 percent increase over 2019. Falling rates in the latter half of 2019 pushed originations to a 12-year high. Should the new forecast numbers materialize, 2020 would be the biggest year since 2006. These targets could remain in effect if mortgage rates resume their downward trajectory later this year.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.0 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.