The Mortgage Bankers Association on Tuesday upwardly revised its forecast for residential origination this year to $1.7 trillion, citing low interest rates that have sparked a massive refinance boom. But it now expects slightly lower volume of $1.3 trillion next year as refinances fall in half.

The higher projection for this year is due almost entirely to low interest rates and government programs helping underwater borrowers refinance, Jay Brinkmann, the MBA's chief economist, said in a news release.

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