Higher mortgage rates are expected to lead to fewer originations through 2027

Mortgage rates have moved north of 7% and are poised to remain there for the foreseeable future. And a more expensive climate for borrowers has pushed lenders to reduce their originations forecasts for the next year. At HousingWire‘s Mortgage Rates Center on Tuesday, published rates for 30-year conforming loans averaged 7.32%, up 4 basis points from one week ago. Rates for 30-year jumbo loans dropped 7 bps during the week to average 7.40%, while rates for 30-year loans through the Federal Housing Administration (FHA) increased 14 bps to average 7.00%. Bob Broeksmit, president and CEO of the Mortgage Bankers Association (MBA), said in a statement last week that mortgage demand declined for a second straight week, a direct result a higher interest rate environment. “Mortgage applications declined for the second consecutive week, with both purchase and refinance activity also below year-ago levels. Mortgage rates hovering around 7% continue to weigh on affordability and dampen borrower demand, particularly among prospective homebuyers. A more favorable rate environment would help support a broader recovery in housing activity,” Broeksmit said. Is another hike on deck? Mike Fratantoni,...