After releasing a mortgage origination forecast of $349 billion for the third quarter earlier this week, FBR Capital Markets revised its estimate to between $400 billion and $420 billion for the quarter Wednesday. FBR anticipates a rise in refinances under the Home Affordable Refinance Program (HARP) as small specialty servicing shops are "still playing catch-up" from the recent boom. Meanwhile, larger players are relinquishing some of their market share, according to analysts at the investment bank.

Investment bank FBR's third-quarter mortgage originations estimate is $349 billion, a 29 percent decline over the quarter. The abating refinance market is a major drag on the mortgage industry, and, "[w]e do not believe that there will be a strong enough increase in the purchase market this quarter to offset the loss in refi volume," FBR stated. FBR estimates a 46 percent decline in refinances in the third quarter and a 2 percent rise in purchase originations.

Mortgage lending remains tight compared to historical norms, and lending could tighten even further as the government takes steps to lessen its role in the market.

Real estate agents say the housing market is beginning to shift from seller control, and they expect price gains to moderate over the next several months, according to the latest survey from Redfin.

National home prices will rise 4.8 percent over the next year, according to a third-quarter forecast from Veros Real Estate Solutions, a risk management, valuation services, and analytics firm based in Santa Ana, California. Regionally, Veros predicts continued strengthening in the West and a lag in the Northeast and parts of the South. The top 10 markets labeled by Veros' forecast are all located in Western states: Arizona, California, Nevada, Oregon, and Washington.

Mortgage rates continued their climb in August, according to the Federal Housing Finance Agency (FHFA).

Despite rising interest rates, owning a home is still significantly cheaper than renting, according to Trulia's Summer 2013 Rent vs. Buy Report.

Sen. Mark R. Warner (D-Virginia) is seeing tremendous momentum toward GSE reform in Congress, he said during a discussion with Zillow chief economist Stan Humphries this week. He also expressed his optimism that the Housing Reform and Taxpayer Protection Act of 2013--a bill he helped co-sponsor--"actually has a chance" of passing. Fellow co-sponsor Sen. Bob Corker (R-Tennessee), who was also part of the discussion with Humphries, expressed similar sentiment, saying the bill is "gaining momentum."

A new tool released Wednesday by the Consumer Financial Protection Bureau (CFPB) provides heat maps and illustrative graphs that detail local mortgage market trends.

At an industry event held in Phoenix, Darrin Benhart, deputy comptroller for credit and market risk at the Office of the Comptroller of the Currency, described the changing face of risk management as the mortgage industry adapts to increased regulation. "As you well know, the list of mortgage-related reforms is extensive," Benhart said. "These reforms mean you will need an even greater emphasis on risk management techniques that not only look at credit risk but also encompass operational and compliance risk."