The Mortgage Bankers Association lowered its 2009 forecast of mortgage originations by more than $700 billion to $2.03 trillion.

Chief economist Jay Brinkmann said the original forecast in March included a caveat that if investors "shied away from Treasuries due to expectations of future inflation and the declining value of the dollar, the effect on rates would be more short-lived and our mortgage originations forecast would prove too optimistic. That has proven to be the case."    - Alan J. Heavens