MBA: 2015 sees housing market 'shifting into high gear'
Posted on Thursday, July 23, 2015 at 2:00:18 PM
The Mortgage Bankers Association seems to be feeling fast and furious after ratcheting up projections for mortgage originations in 2015 and stating that the housing market has "shifted into high gear."
Purchase originations are set to rise substantially if the trade group's forecasts are anything to go by. The MBA increased projected purchase originations to $801 billion in 2015 and $885 billion in 2016. Those are increases of $71 billion and $94 billion, respectively. Refinances are expected to reach $551 billion in 2015.
Total originations are expected to be $1.35 trillion in 2015 and $1.26 trillion in 2016. In 2014, total originations were $1.12 trillion.
The trade group noted that as the economy continues to improve, and the job market maintains its robust performance, interest in homebuying will remain high. This could lead to a mortgage hike in September, but any negatives that would come with some action are expected to be outweighed by strong hiring.
For now, it looks like the housing market is fast headed toward the end of the recovery and a new beginning for normalcy.