The pencil sharpening represents a 13.8% jump from the $3.4 trillion Fannie predicted just month ago, and 88.8% more than the $2.06 trillion in originations the GSE forecast in January, before the advent of the coronavirus pandemic.
Despite a sharp drop in GDP in the second quarter, Fannie economists expect mortgage originations to reach $3.4 trillion in 2020, the most since the banner year of 2003.
In addition, Fannie and Freddie have helped reduce face-to-face interactions during the closing process by expanding the use of powers of attorney and remote online notarizations.
With strong refinance demand, low rates and solid housing sales for this time of year, 2019 could end up as the best year since 2006, when originations totaled $2.550 trillion.
First-time homebuyers accounted for over half of the purchase mortgages securitized by Fannie, Freddie and Ginnie in the second quarter, and private MIs are taking a bigger share.
First-lien mortgage originations were up across all product lines in the second quarter of 2018, but the jumbo market saw the biggest gains from the first three months of the year, according to a new Inside Mortgage Finance ranking and market analysis.