Projections for U.S. home financing this year have increased $400 billion.

An increase in conventional refinances is responsible for the bright outlook, according to

First-quarter residential originations are expected to reach $430 billion, Freddie Mac said in its March Economic and Housing Market Outlook. Estimated U.S. production is 46 percent higher than estimated fourth-quarter 2008 volume of $294 billion. Originations during the first-quarter 2008 were about $486 billion.

During all of 2009, Freddie projects home fundings will climb to $2.400 trillion – a $400 billion increase from last month’s forecast and a $700 billion improvement over last year’s estimated activity.