Analysts at FBR & Co. predicted that 2016 could be the best year for mortgage lending since 2013 a few weeks ago, but they’re already revising that prediction. Now, those analysts say, 2016 could be even stronger, according to HousingWire staffer Ben Lane.
A strong third quarter, which could prove to the best for mortgage lending since the fourth quarter of 2007, is the reason for the upgraded prediction.
In the new report, FBR analysts Paul Miller and Tim Hayes state that they currently estimate that mortgage originations will top $600 billion in the third quarter, topping their previous estimate of $565 billion.
If mortgage originations do indeed exceed $600 billion, that would mean that the 3rd quarter of 2016 is the best quarter for mortgage lending in nearly nine years.
The report credits a “resilient” purchase market and continued low interest rates, which are boosting refinance originations, as reasons for the origination uptick in the third quarter.