Don’t worry, it’s still here!
The Mortgage Bankers Association is projecting a 28% jump in purchase money originations in 2011 over last year. The latest forecast calls for an increase in purchase money mortgages from $474 billion last year to $606 billion in 2011. And, purchase money lending is expected to increase again in 2012, to $729 billion! The only bad news is that the refinance business is expected to drop a whopping 59%. But the way I see it, that is not bad news at all. My take is that the drop in refi’s is because the focus is shifting to buying again. Many homeowners have been worried over the last couple of years as to where this housing market was headed. Therefore, they refi’ed with the intension of staying put and weathering the storm. NOW, the focus appears to be shifting to investing in the low priced housing market. Sales are up in many strong markets and weak ones are gaining speed.