Mortgage lending at U.S. banks will decrease in 2019 as rising borrowing costs reduce demand from homeowners to refinance their current homes.
Despite higher mortgage rates, demand for home-purchase loans will increase slightly in 2019 because of rising wages and slower home-price growth. Home-purchase loan originations should increase next year about 4% from 2018, according to the Mortgage Bankers Association. This year, purchase loan originations should increase around 3% from 2017. Continue reading “Mortgage Lending Will Decline Next Year as Demand for Refinancing Falls”