The Mortgage Bankers Association has cut its 2014 loan origination forecast to $1.05 trillion because home purchase loan application volume is well behind where it was this time last year.

There is weak demand for housing because of slow growth in employment and wages, said Michael Fratantoni, the MBA's chief economist, said Monday at the group's National Secondary Market Conference in New York. In January, MBA predicted volume would total $1.12 trillion in 2014. Last year, the industry produced about $1.8 trillion in loans.

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