The bearish sentiment that has unexpectedly prevailed in the bond market since early February has driven mortgage rates up. Sharply higher rates will significantly reduce this year's originations of single-family mortgages.

We now project that 1994 originations will total around $675 billion, a plunge of $450 billion from the record volume of 1993. The projected sizable drop will come entirely from the subsidence in refinancing.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

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