The refi boom will lose steam and mortgage lending volume will contract after hitting an all-time record this year, according to the Mortgage Bankers Association of America's first three-year economic forecast.The MBA now predicts that mortgage volume will come in at $3.4 trillion this year, with refinancing accounting for 68% of the total. But gradually-rising rates will limit refinancing in 2004 and 2005, while home purchase lending will remain strong, MBA chief economist David Duncan said in a conference call with reporters. The MBA expects home loan volume to total $1.94 trillion next year (a decline of 43% from this year's projected volume) and $1.46 trillion in 2005. The association can be found online at http://www.mbaa.org.
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