Mortgage lending will likely fall 25% in 2012 to its lowest level since the late 1990s as the economic slump keeps demand low and as banks begin to run out of qualified borrowers to refinance. The Mortgage Bankers Association predicted that home loan originations will fall to $900 billion in 2012 from an estimated $1.2 trillion in 2011 and nearly $1.6 trillion in 2010. The forecast comes even as 30-year fixed-rate mortgages are expected to hold near historic lows. Due to regulation and other challenges facing banks, the lenders are unlikely to ease credit to increase loan volumes as they might have done in other times when loan demand has fallen.
Mortgage Lending Likely to Fall 25% in 2012
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