After a slow first quarter, mortgage originations in the United States are surging as homeowners capitalize on historically low interest rates, with the totals approaching levels not seen since 2003.
Mortgage originations totaled $962 billion and $928 billion in the second and third quarters, respectively, driven by homeowners refinancing existing mortgages.
Originations are expected to reach $3.39 trillion this year, which would represent a 50% increase compared to last year’s total, according to the Mortgage Bankers Association. Yet as high as that number is, it would still fall short of the record $3.81 trillion in originations set in 2003.
With the prospect of a widely distributed and accepted vaccine drawing closer, the economy will continue its recovery and mortgage rates may not stay quite as low next year. As a result, the frantic pace could very well ease.
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Contributing: Deborah Cohen