Low mortgage rates may drive home purchase lending to 14-year high

The recent drop in mortgage interest rates is already having an impact on overall mortgage demand as well as the demand for refinances, but just how much could the return of low interest rates impact the market?  Quite a bit, according to new data from iEmergent. iEmergent, a mortgage forecasting and advisory firm, is projecting a 3.9% jump in total home-loan volume this year. That puts iEmergent at the head of the forecasting pack. Freddie Mac is expecting a gain of 1.5% for total mortgage lending, according to its March mortgage finance forecast. The Mortgage Bankers Association pegs the increase at 1%, and Fannie Mae expects a drop of about half a percentage point.