The economic growth that is currently happening in the U.S. is helping purchase originations with positive results that should carry over into 2018.
"Purchase origination volume should rise by 7.3% in 2018, according to the Mortgage Bankers Association. Refinance volume, however, is expected to drop 30%, causing a decline in total originations," according to National Mortgage News.
"A lack of housing inventory is driving continued price increases, making it 'difficult for a lot of people to transcend' and enter the market, Lynn Fisher, the MBA's vice president of research and economics, said at a press briefing's during the MBA’s annual convention in Denver."
We have reported in the past that home prices are far exceeding the growth of wages though that is due to a large shortage of houses. The real test is whether or not there will be some shift to help the prices balance out along with wages.
As for mortgage interest rates, the report shows that rates will increase in years to come, however, is not expected to affect the purchase market.
For more on the increase of purchase originations click on the image above.