More money available for home loans

Good news for home buyers: U.S. mortgage lenders are adding funds to their loan portfolios because of continuing low interest rates. The Mortgage Bankers Assn. said Monday that lenders are expected to make $2.5 trillion in new loans this year, 25% higher than forecast earlier.

The U.S. mortgage industry last year issued a record volume of home loans -- many for refinancing -- totaling as much as $3.8 trillion, the trade group said. Although mortgage rates are hovering at their lowest level in more than four decades, sales of new and existing homes are expected to fall 3% to 6.95 million from 2003’s record 7.2 million.