An improved outlook for home purchase financing this year was was wiped out by a big drop in expected refinancings. But next year’s forecast was cut thanks to lowered purchase-money expectations.

When this month concludes, an estimated $445 billion in residential loans are expected to have been closed during the third quarter.

The total, which includes both refinances and loans to finance a home purchase, is expected to tumble to $375 billion during final three months of this year.

Source: Mortgage Daily