Posted By thestatedtruth.com on October 26, 2010

Oct. 26 (Bloomberg) — Home lending in the U.S. will fall below $1 trillion next year to the lowest level since 1996, according to the Mortgage Bankers Association.

Originations will decline to $996 billion in 2011, from a projected total of $1.4 trillion this year, the trade group said today in a statement released during its annual conference in Atlanta. Lending reached a record $3.8 trillion in 2003 as refinancing soared, with new loans remaining elevated over the next few years as home prices and sales boomed.

Total home lending will drop next year because refinancing will fall “as mortgage rates increase and the pool of eligible borrowers shrinks,” the group said in the statement. More loans for home purchases will offset some of that decline, as “existing home sales recover and home prices stabilize.”

This year’s estimated $480 billion of home-purchase mortgages would be the lowest total since 1993, Brinkmann said.

More at:http://noir.bloomberg.com/apps/news?pid=20601087&sid=aFV4tBHWAxPU&pos=1

Categories: Commentary, Economy, Finance, National News, Real Estate
Tags: mortgage volume