1Q Production Close to $900B

First-quarter residential loan production will total between $860 billion and $890 billion, according to preliminary survey figures being collected by National Mortgage News.At the low end of the estimate range, the first quarter would be the second-best quarter ever for the industry. Most mortgage economists think production this year will range from $2.6 trillion to $3.2 trillion. On Friday the bond market rallied somewhat when the Commerce Department reported that the U.S. gross domestic product grew by an anemic 1.6% in the first quarter. The yield on the 10-year Treasury (which most mortgages are pegged to) fell to 3.87%. Even though the GDP was a bit better than the 1.4% growth rate posted in the fourth quarter, it fell short of what some economists were hoping for. Bond prices jumped after the report, a move that results in lower interest rates. (See the April 28 issue of NMN for more information about first-quarter residential loan production.)