The Mortgage Bankers Association’s new president stressed that the refinance market will dwindle in years to come, during prepared remarks at the National Secondary Market Conference in New York City yesterday.
And added that “refinances do not necessarily create communities, or, for that matter, a successful long-term business model.”
Per the MBA forecast, the refinance share will drop to 26 percent in 2012, down from 37 percent this year and 66 percent in 2010.
Still, Stevens believes the MBA’s best years are ahead, thanks to the so-called “Echo Boom,” also known as Generation Y or the Millennials.
These youngsters, born between the mid 1970s and the early 2000s, total nearly 80 million, which is two to three times the size of Gen X.
This obviously creates huge potential for purchase money mortgages, though the MBA still has to prove its purpose, which Stevens says is supporting homeownership and lowering costs for homebuyers, through both direct financing and the secondary market.