Although an expected increase in interest rates is likely to put a dent in annual mortgage originations, issuance of residential mortgage-backed securities is still expected to rise.

Next year, the volume of home-lending activity is expected to decline as a result of an anticipated increase in interest rates on mortgages.

Lower originations will likely lead to weaker credit standards — though at a measured pace as declining refinance volume will give loan officers a greater incentive to spend more time on more difficult transactions.

Source: Mortgage Daily