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Back To The Future

We really aren't that sure how to greet this news, considering that we aren't really sure that another $3 trillion in lending transactions is exactly what we need right now. But, then again, it does feel like 2005 for the first time all over again, and we've got that going for us. So that's nice. And, we suppose, to the extent this is refinancing, that's a good thing. For half of the market.

Mortgage Bankers Association boosted its forecast for 2009 home-loan originations by $800 billion to $2.78 trillion, which would make it the fourth- highest year on record.
The increase is due to the drop in fixed mortgage rates following last week's Federal Reserve announcement that it will triple its planned purchases of mortgage-backed securities, the Washington-based trade group said.

U.S. Mortgage Lending May Reach $2.78 Trillion, Bankers Say [Bloomberg]