Fannie Mae Predicts $100 Billion Decline in Originations for 2018
Industry giant Fannie Mae released a projection report for 2018 with some pretty tough news for originators. The company is predicting a $100 billion decline in originations for 2018, especially in the first and fourth quarters.
"Additionally, the new tax laws are likely to motivate a mixed response in the housing market: Increased disposable household income should lead to greater housing demand, but changes to deductions essentially reduce the subsidy for homeownership," said Fannie Mae Chief Economist Doug Duncan, according to National Mortgage News.
"On balance, we expect the housing market in 2018 to encounter many of the same challenges as last year, including inventory shortages, particularly in the middle and lower end of the market, and affordability headwinds."
Duncan's projections are slightly altered from his initial projections, though, it doesn't appear to be enough to impact the overall outlook for 2018. He believes that the same issues that plagued the industry in 2017 will continue to do so in 2018.
To learn more about Duncan's predictions and the current pattern of the mortgage industry, click on the image above.
