While Michael Fratantoni, vice resident of research for the Mortgage Bankers Association (MBA) is predicting under $1.1 trillion in new loans this year, NationalMortgageNews, the article’s source, projects originations will be $1.3 trillion, 18% higher than MBA’s. As refinancings continue to slide, says Fratantoni, he is expecting purchase loans to rise from the $404 billion of 2011 to $682 billion this year and an expected $702 billion in 2013. He cautions that it all hinges on the mortgage rate.

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