Industry News

Economic future bright through 2007, bankers’ group says

'Robust' growth in the forecast

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A major national mortgage bankers' group projects "robust" economic growth through 2007 and says 2005 will be the third-biggest year ever, trailing 2003 and 2002, the group said today. The Mortgage Bankers Association today released its three-year economic forecast update, projecting robust economic growth of around 3.5 percent through 2007. Total residential mortgage production in 2005 will be $2.78 trillion, the third-biggest year behind 2003 and 2002, the MBA said. "At about 3.5 percent, economic growth will be solid this year despite a drag from sharply higher energy prices, hurricane-related impacts, and a widening trade deficit," said Doug Duncan, MBA chief economist, in a statement. "Housing will continue to be a major contributor to economic growth, and we expect the string of record-high home sales to continue for the fifth consecutive year in 2005," Duncan said. During a panel discussion at MBA's 92nd Annual Convention & Expo in Orlando, Duncan said that the labor ma...