Economists: Originations to Average Nearly $3T

Mortgage originations will average close to $3 trillion a year from 2004 to 2013, according to the chief economists of three trade groups and two secondary market agencies."America's families will need 125 million new mortgage loans for home purchase or refinancing totaling $27 trillion in mortgage originations," Freddie Mac chief economist Frank Nothaft said at a press conference. Meanwhile, mortgage debt will grow at a rate of 8.25% a year, he said, which is close to the growth rate experienced over the last decade. The chief economists from Freddie, Fannie Mae, the National Association of Realtors, the National Association of Home Builders, and the Independent Community Bankers of America collaborated on the report, which is called "America's Home Forecast: The Next Decade for Housing and Mortgage Finance." The bullish report, sponsored by the Homeownership Alliance, predicts that the homeownership rate will exceed 70% by 2013.