Purchase mortgage originations to grow

The Mortgage Bankers Association projects an increase in purchase originations. It will be driven by modest increases in home sales and stabilizing home prices. In contrast, MBA refinance originations are expected to fall as mortgage rates gradually increase throughout 2011 and 2012.

"Economic growth in 2010 has been subdued and this trend will likely continue for most of 2011. Households remain cautious given the weak job market. On top of that, uncertainty regarding tax rates for next year, and the potential for tax withholding to increase at the beginning of the year, lead us to forecast that consumer spending will remain weak, particularly in the first half of 2011," said Jay Brinkmann, MBA's Chief Economist.

Thank you to Ryan Nelson at Academy Mortgage for this article