Real Estate
Home›Real Estate›Mortgages›Mortgage origination volume expected to fall in 3Q
Mortgage origination volume expected to fall in 3Q
Mortgage News Daily cites forecasts pointing to a roughly 8.0% to 10.0% quarter-over-quarter decline in 3Q volume, alongside flat to slightly lower gain-on-sale margins.
Mortgage News Daily highlights expectations that U.S. mortgage origination volume will drop in the third quarter, citing forecasts from industry sources.
KBW’s Bose George expects mortgage origination volume in 3Q to be down about 10.0% quarter over quarter, while the MBA forecasts a 3Q decline of 8.0%, Fannie Mae projects -7.0%, and agency securitization volume fell 9.3%.
The outlet also notes concerns about profitability, saying gain-on-sale margins are expected to be flat to down modestly, and that sharp increases in rates could make pipeline hedging more challenging.
Mortgage News Daily adds that estimates for mortgage originators are being reduced to account for the softer volume outlook and declining forward industry volume estimates.