Record Year for Home Lending
Home lending is expected to drop below $1 trillion in 2011, the lowest level since 1966, according to the Mortgage Bankers Association, which is meeting this week in Atlanta.

Mortgage rates are unlikely to fall further even if the Federal Reserve buys more U.S. debt. Without low rates, refinances are likely to slow significantly, said Jay Brinkmann, the MBA’s chief economist.

Business in 2010 has been stellar. “With these interest rates, you cannot be having a bad year in 2010,” Dan Arrigoni, CEO of U.S. Bancorp’s mortgage unit, the sixth- largest U.S. home lender, said Tuesday during a panel at the conference. “It will probably go down as ranking number one or two for us, both in terms of production and profits.”

Source: Bloomberg, Jody Shenn (10/26/2010)