News
2015: The Year Home Lending Comes Back?
January 15, 2015
Fannie Mae and Moodys economists predict that home lending will enjoy an overdue comeback this year following an anemic 2014. The Mortgage Banking Association reported that lending fell a staggering 36% last year to lows not seen since 1997. Bloomberg reports that loan origination fell more than 50% at Wells Fargo and JPMorgan, according to earnings reports those banks released yesterday.
Over the next 12 months, an improved labor market, (admittedly sclerotic) wage growth and rock bottom mortgage rates should foster a rebound. The MBA's forecast includes a 6% rise in home purchase and refinancing loans. There were $1.1T in mortgages made last year,
