Fannie Mae Lowers Origination Projections for Second Half of 2015

Fannie Mae has lowered its projections for single-family mortgage originations for the second half of the year, based on a variety of negative economic conditions.

Fannie Mae's August projection for single-family origination volume in the third quarter fell to $351 billion, compared to its July projection of $353 billion in origination volume. The projections are made by Fannie's Economic & Strategic Research Group.

Fannie's forecast for fourth-quarter volume also declined. Its August projection was $296 billion, compared to its July estimate of $320 billion.

Fannie cited several factors for the downward revision: a drop in nonresidential investment in equipment and structures, the strength of the U.S. dollar and declines in oil prices.

"While consumer spending growth picked up as we expected in the second quarter of this year, other components disappointed," Doug Duncan, Fannie's chief economist, said in a news release.

Positive economic indicators include steady job creation, "with full-time employment getting closer to pre-recession numbers and household net worth continues its gradual rise," Duncan said.