Mortgage bankers betting on 2012 for recovery

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The Mortgage Bankers Association forecasts that home sales will rise slightly in 2011 but won’t really gather momentum until 2012.

The industry group’s latest report released this week predicts existing-home sales — forecast to be about 8 percent lower this year than last, are expected to grow by less than 2 percent next year before rebounding by 16 percent in 2012.

New-home sales, which are expected to drop 13 percent this year from last, are expected to bottom out in the third quarter of this year and grow by 20 percent in 2011 and 40 percent in 2012.

That, along with price stabilization and an uptick in sales of high-end properties, should drive purchase mortgage originations up 30 percent in 2011, the MBA said.