Tuesday, May 31, 2011

Mortgage originations down 35% in first quarter

It's the triple 3: 1) Decrease in sales 2) Decrease in prices 3) Decrease in mortgage rates.  Usually a small dip in rates stimulates buying, but not this time.  
Mortgage originations in the first quarter fell 35% to $325 billion, breaking three consecutive periods of growth and threatening to plunge the market back to 2000 levels, according to a report from Inside Mortgage Finance.
The first-quarter drop is the worst experienced since the onset of the recession when mortgage originations plummeted 31.5%, according to a new research report from Federal Reserve Bank of Cleveland researchers Yuliya Demyanyk and Matthew Koepke.
The same report cites Mortgage Bankers Association projections which estimates mortgage originations could fall to $1.05 trillion in 2011, the lowest level in 11 years.
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