Mortgage Originations to drop under $1 trillion in 2011

A few days still left in 2010 yet analysts are already forecasting more of the same market conditions in the new year with Mortgage Originations expected to drop under $1 trillion in 2011

Mortgage Originations

The facts are stark and visual for all to see there is simply a limited supply of money and it is shrinking all the time

The US economy is stagnant it is not moving up or down significantly it is just sat there quite frankly doing nothing!

Unemployment is expected to be north of 10% of the population by the end of 2011

This report from Mortgage Bankers Association is interesting – quote –  expects mortgage originations in 2011 to drop to under $1 trillion for the first time in 14 years as economic conditions continue to show weak growth.

Interest rates—currently at near-record lows, with MBA reporting this morning that 30-year fixed rates are at nearly 4.3 percent—will rise “benignly, but not on a flat path,” Brinkmann said, to 5.1 percent at the end of 2011 and 5.7 percent at the end of 2012.

‘The US Economy is in the tank and if these forecasts are accurate it is going to be bleak housing market in 2011!’

http://www.mortgagebankers.org/tools/FullStory.aspx?ArticleId=17879

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