MBA publishes mortgage market forecasts for 2022 – RISMedia

The Mortgage Bankers Association (MBA) recently published its economic and mortgage market forecasts for year-end 2021 and 2022.

That is what the organization predicts.

At the end of 2021:

  • Purchases will rise to $ 1.61 trillion, dwarfing the previous all-time high of $ 1.51 trillion in 2005.
  • Refinancing spending will be $ 2.32 trillion – up from $ 2.63 trillion in 2020, but the third highest ever.
  • Mortgage lending is expected to end at around $ 3.93 trillion – slightly below the record year 2020 ($ 4.1 trillion).
  • After a decline of around 2.3% in 2020, the economy is expected to recover to a growth rate of 5.5%.

For 2022:

  • Total mortgage lending could plunge to $ 2.61 trillion in 2022 as more activity shifts to the purchase market.
  • Refinancing sources could drop to $ 870 billion.
  • The purchases could eclipse the record high of 2021, reaching $ 1.74K, driven by strong demand for real estate and rising real estate prices and sales.
  • The rise in home prices could slow to 5.1%.
  • Mortgage rates could rise year-round, reaching 4% by December 2022.
  • Economic growth could be 4% in 2022 and the unemployment rate could fall to 3.5% by the end of the year.

Source: MBA

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