Analysts at Chicago's Harris Trust Corp. are expecting homeowners to start trading up to nicer houses rather than fixing up their old ones. And that should stimulate the demand for purchase mortgages, they say.

The impulse to trade up is a timely one, says Brian Israel, a vice president in Harris' residential mortgage division. He and his colleagues expect refinancings to slow next year.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.