Purchase originations hit $253 billion in the second quarter, according to a new report from FBR & Co. along with a Mortgage Bankers Association forecast of a 7% increase in total originations in 2015, that number shows a strengthening market which should beat original expectations for the year, according to FBR. The company projects that total purchase volumes to hit more than $800 million by the end of 2015.
“This, in our view, implies a strong run-rate for the industry into 2016 on the purchase side, particularly given the gradual recovery in the overall economy. We continue to believe that a normalized market of $1.5 trillion is closer than it appeared earlier in the year,” the FBR report said.
Meanwhile, the MBA expects total purchase originations in 2016 to increase 10% over this year’s total, reaching $905 billion. Refinance originations, meanwhile, are expected to drop by a third in 2016, ending next year at $415 billion.
U.S. purchase originations in the second quarter were the strongest since 2007, according to a new report.