Wells Fargo: Originations May Rebound

With the housing market stabilizing, mortgage lenders may see stronger origination activity next year, according to an economist at Wells Fargo & Co."People may be surprised how quickly housing activity bounces back," said Scott Anderson, a senior economist at Wells Fargo. Home sales and construction are already starting to stabilize, and Mr. Anderson said he expects to see higher originations next year, mainly due to strong refinancing activity as well as increasing home sales in the second half of 2007. "It has really been a mortgage story," Mr. Anderson said. Mortgage rates are down nearly a percentage point from the peak last July, which created a surge in refinancings. In addition, purchase mortgage applications are up almost 15% over the past four weeks. "We do think we are at the bottom, and we will see an uptick in originations as well as sales and perhaps even starts," the senior economist told reporters.