Mortgage lending decline is forecast

Mortgage lending, a bright spot in the economy, is expected to slide to $1.57 trillion in 2003 from this year’s anticipated record of $2.03 trillion, the Mortgage Bankers Assn. of America said in its annual forecast last week. Higher interest rates {mdash} the 30-year fixed rate is expected to rise to between 6.8% and 7% by the end of 2003 {mdash} will end the refinancing boom and price some home buyers out of the market, MBA chief economist Doug Duncan said. Refinancing’s share of mortgage activity is expected to drop to 36% from 58% this year, he said.