7 Percent More Americans to Apply for Mortgages in 2015 than 2014

The Mortgage Bankers Association forecasts a 7 percent increase in Americans seeking home loans in 2015 compared to 2014. Borrowers will likely see 30-year fixed interest rates remain at or below 4 percent for the remainder of this year and most of next year. New originations are expected to rise 15 percent to $731 billion from $635 billion in 2014. However, MBA has refinancings declining 3 percent to $457 billion from $471 billion. “We are forecasting that strong job growth, coupled with still-low mortgage rates, should translate to an increase in home sales and purchase originations,” MBA chief economist Michael Fratantoni told bankers at the group’s annual convention in Las Vegas. Also, MBA’s forecast for originations this year is now $1.11 trillion — up from $1.01 trillion. The 2013 result was revised to $1.85 trillion from $1.76 trillion. | Read More