“In contrast, we expect refinance originations will decrease by 28.3 percent from 2017, to approximately $430 billion. In total, mortgage originations will decrease to $1.60 trillion in 2018 from $1.69 trillion in 2017,” stated the MBA.
As the MBA chart below reflects, there has been a tidal shift in the conventional mortgage market, with home purchases picking up the slack for the declining volume of home refinancing.
“All the pieces are in place for stronger growth in 2018 and beyond, although the housing market has been recently hamstrung by insufficient supply, with inventories of homes remarkably low given the home price growth we have experienced.”
That specific phrase from the MBA’s release to MHProNews is yet another wake-up call for the manufactured home, and other kinds of off-site built homes industry.
With ‘stick builders’ essentially maxed out due to labor and other constraints, the opportunity to grow the manufactured home space more rapidly is looming ever larger.
“The job market remains strong, demographic trends are quite favorable, mortgage credit is becoming more available to qualified borrowers, and home prices should continue to rise,” stated the MBA. All of those are factors and others are tracked and reported to manufactured housing professionals here on MHProNews.
“In addition to the updated forward-looking forecast, MBA upwardly revised its estimate of originations for 2016 to $2.05 trillion from $1.89 trillion, to reflect the most recent data reported in the 2016 Home Mortgage Disclosure Act (HMDA) data release,” the association’s release stated. ## (News, analysis, commentary.)
Submitted by Soheyla Kovach to the Daily Business News for MHProNews.com.
