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Appreciation Expected to Slow Down.(Brief Article)

Mortgage Servicing News

| February 01, 2005 | COPYRIGHT 2005 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Washington -- Expect single-family mortgage origination to decline by 10% to 20% in 2005, according to two secondary market economists as refinancing and the home sales market cool off. Fannie Mae chief economist David Berson sees originations falling from $2.74 trillion in 2004 to $2.15 trillion this year.

His pessimistic forecast is based on home sales declining by 7%-8% and house price appreciation slowing to 3.5%. His cross-town rival at Freddie Mac expects 2005 loan production will decline by only 10% to $2.42 trillion.

Freddie chief economist Frank Nothaft expects home sales will slow by 4%-6% from 2004's record ...

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