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Article: Originations to stay on decline in 1995, economists agree. (mortgage loans)
- Article from:
- American Banker
- Article date:
- December 27, 1994
- Author:
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Economists who follow the mortgage industry say originations will continue to sink in 1995, possibly by as much as 20%, to between $600 billion and $650 billion.
But for an expected increase in home prices, the drop in dollar volume would be even larger, they say.
The Federal Reserve's six interest rate increases took a toll on originations starting in February, they say, and the damage will continue next year.
Robert Van Order, chief economist at the Federal Home Loan Mortgage Corp., expects housing prices to rise even faster than inflation. Housing costs will rise about 4.5% in 1995, he said, in comparison to a 3% rise in living costs generally.
At the end ...