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A not so rosy forecast from the Mortgage Bankers Association

The Mortgage Bankers Association (MBA) expects to see mortgage originations fall from an estimated $1.2 trillion in 2011 to $900 billion in 2012. I went to google images to find something “rosy.” I found this  - a photo of a “Rosy lipped batfish.” The Rosy lipped batfish is a rather apt spokesfish for this 2012 forecast… Here are some choice excerpts from their always thorough review of the year ahead. ‘The drop will be driven by a significant decline in refinance originations, while purchase originations will increase only slightly. The economy will see another year of anemic growth in 2012, and then will grow somewhat faster in 2013. Refinance originations are expected to fall despite low mortgage rates as economic uncertainty lingers and fewer eligible borrowers remain” “However, the uncertainty is not one-sided. We also see a path for the economy that could lead to above-trend growth in 2012. Housing inventory and shadow inventory is declining … [Read more...]