Freddie: Expect further declines in lending

New forecast a reversal from last month

Economists at Freddie Mac are more pessimistic about the economy than they were a month ago, and no longer believe mortgage originations will rebound in 2009.

In a forecast issued today, Freddie Mac’s office of the Chief Economist said total mortgage originations are expected to shrink by about 8 percent in 2009, to $1.65 trillion, before rebounding to $1.82 trillion in 2010. That compares to $3.26 trillion in orginations of purchase loans and refinancings in 2005.