Posts Tagged ‘refinance’

Mortgage Origination Volume Falls 34%

Posted on June 07, 2017 by Laura Lam

Mortgage origination volume fell 34% in the first quarter compared with the fourth quarter, driven mainly by a 45% drop in refinances, according to Black Knight Financial Services’ Mortgage Monitor report.  Overall, lenders originated about $372 billion in first-lien mortgages in the first quarter – the lowest volume seen since the fourth quarter of 2014.  Purchase originations fell 21% compared with the fourth quarter but were up 3.0% compared with the first quarter of 2016, according to the report. An ATTOM Data Solutions report also showed that a little over 1.4 million loans (refinance and purchase loans) were originated in the…

Younger Homeowners Opt for HELOCs

Posted on April 18, 2017 by Laura Lam

As interest rates increase, hovering higher than rates last year, buyers have little incentive to refinance their mortgages.  But as refis drop, a whole new loan type rises to take its place – home equity lines of credit (HELOC). While mortgage rates may be high, so are home prices, creating a wealth of new equity for homeowners. Thus, the increase in HELOCs, according to a recent CNBC article by Diana Olick.  More than any other generation, Millennials are utilizing this cash-out mortgage loan.  According to the article, “The last time interest rates rose as much as they have over the…

Average Mortgage Loan Size Hits All-Time High

Posted on March 16, 2017 by Laura Lam

The average loan size for purchase mortgage applications hit an all-time high last week, according to the latest data from the Mortgage Bankers Association.  The MBA’s Weekly Mortgage Applications Survey for the week ending March 3, 2017 showed that the average loan size for purchase applications was $313,300.  That’s the highest that figure has been during any week since the MBA began conducting its weekly application survey in 1990. Overall, the MBA’s report showed that mortgage applications increased 3.3% from the previous week.  The report also showed that the Refinance Index increased 5% from the previous week to the highest level since…

Millennials Locked Out of Housing Market Again

Posted on March 14, 2017 by Laura Lam

For quite some time, we’ve heard that Millennials have put off buying a home.  These reasons include student debt load, tighter lending standards, and simply not wanting to sacrifice everything for a chance to own the “American Dream.”  Whether Millennials actually want to buy a home or not, there has to be homes available to purchase.  Currently, young home shoppers have a very shallow pool of options – and the current inventory shortage is predicted to stick around through 2017. Daren Blomquist, senior vice president at ATTOM Data Solutions, identified 3 key factors keeping housing inventory in a drought, barring entrance for aspiring…

Home Equity Demand Picks Up

Posted on February 06, 2017 by Laura Lam

Thanks to a confluence of factors, many banks and credit unions are predicting a surge in originations of both home equity loans and home equity lines of credit in 2017.  Driving the demand, bankers said, is that homeowners finally seem ready to take advantage of the appreciation in home values and pull the trigger on home-improvement projects they have been putting off, said Logan Pichel, the head of consumer lending at Regions Financial. Another contributing factor is that banks are carrying relatively low balances of home equity loans, so they have plenty of room to originate new loans. Though it…

Mortgage Industry Predictions for 2017

Posted on January 09, 2017 by Laura Lam

What does 2017 have in store for the mortgage industry?  Eight industry experts weigh in on what they see coming in the next year for origination, servicing, technology and regulation.  A (Home) Buyer’s Market – “First-time buyer activity will surge as refinances dry up. Realtor relationships will be everything in the year ahead.” ~ Gary Acosta, Co-Founder and CEO, National Association of Hispanic Real Estate Professionals Generation Gap – “We can expect that in 2017 the purchase market will increase significantly due to multiple factors, including the rise in wealth and homeowner readiness among millennials. As companies try to meet…

Lending Trouble Lies Ahead in 2017

Posted on January 04, 2017 by Laura Lam

Mortgages, commercial-and-industrial loans, subprime auto lending and student lending are ripe for setbacks and, in some cases, crises in 2017.  Here is a breakdown of each of those risk factors, the reasons behind them and the possible upsides or alternative strategies. Mortgages – The refinance market has largely carried the mortgage industry over the past few years because consumers took advantage of historically low rates. Now that the Federal Open Market Committee has raised rates twice in the past year, and the benchmark 10-year Treasury has spiked upward since the presidential election, many expect the refinancing market to nosedive.  “We’ll…

How Will Trump’s Win Affect the 2017 Mortgage Industry?

Posted on November 14, 2016 by Laura Lam

Rising interest rates will trigger a downturn in refinance activity in 2017, while purchase originations will rise, according to the Mortgage Bankers Association’s most recent industry forecast. But those projections, released in late October, assumed a continuation of housing and economic policies that would have come with a Hillary Clinton win. According to MBA Chief Economist Michael Fratantoni, it would be been easier to predict Clinton’s policies.  However given the high-level nature of Trump’s campaign proposals, he said it’s more difficult to gauge what the specific impact will be.  “We’ll learn a lot more about that in the coming weeks,”…

Labor Day Week Sees Uptick in Mortgage Applications

Posted on September 29, 2016 by Laura Lam

Homebuyers jumped back into the market after Labor Day, filing applications for mortgages at a far faster pace than in previous weeks.  Total mortgage application volume rose 4.2% on a seasonally adjusted basis, according to the Mortgage Bankers Association. The results were adjusted to account for the Labor Day holiday. Unlike during much of the summer, application volume last week was fueled more by buyers than refinancers. Mortgage applications to purchase a home jumped 9% from the previous week. Purchase volume is down nearly 19% in the past four weeks, but August is not usually a strong month for homebuying….

Lenders Surprised by Trended Mortgage Data

Posted on June 15, 2016 by Laura Lam

When a consumer refinances or pays off her house in preparation for moving, you might expect her to reduce other debts to help get the new mortgage application approved.  But the average prime-credit mortgage borrower doesn’t do this, according to a new report from TransUnion based on trended credit data.  Rather, these borrowers’ credit card usage usually increases a month before closing on a new home loan, compared to 6 months before the old mortgage’s payoff. Trended credit data includes more details about consumer use of credit over time than home mortgage lenders have typically looked at. These include payment and payoff…