First Quarter Data Show Good Start For Mortgage Lending

2 minutes read

It’s a good start for mortgage lending – or at least that’s what the numbers say. In a latest data report released by Equifax, the first quarter of the year has seen increases in mortgage activity, owing to the positive financial wave that Brexit resulted after its June 23rd referendum.

For starters, refinance mortgage applications have rocketed up, a report that is echoed by Fitch Ratings. But it’s not the only activity that shared a significant hike; actual first mortgage originations owned a total dollar amount of $450.5 billion in the first financial quarter of the year, a 12.3 percent year-over-year increase and the highest amount for a first quarter since 2013.

The total number of new first mortgages increased by 10.3 percent over the same time period last year, that translates to 1.86 million new mortgages.

As rates remain low, many people are taking advantage of the opportunity to lock down on rates and refinance their mortgages. Many are seeing how they can use the new low rates to cash out from their equity, while others are strategizing to get a shorter loan life, while securing even less on their monthly payments. And the options will be there for a while.

»Click here to help you find a home loan now!»

Freddie Mac predicted that rates are “likely to remain low throughout the summer,” as its Chief Economist Sean Becketti says.

It is, thus, no surprise that along with the refinancing surge, home equity loans have gone up as well. According to the same report, there was a 23.5 percent year-over-year increase in home equity installments in terms of the number of mortgages originated and a corresponding 10.2 percent increase in home equity lines of credit during the same time period.

For HELOCs, the total credit limits of new loans originated in the first quarter was $35.2 billion, a remarkable eight-year-high and an astounding 14 percent year-over-year increase. Equifax’s chief economist Amy Crews Cutts predicts the second quarter will maintain the trend.

The numbers are telling and it’s all good – at least for now. Summer is projected to continue to have lower interest rates but December will potentially ramp it up a percent, if not two.

The flood of Fed speeches last week seems to be pointing to that hike. Once a clear post-Brexit outlook is established, the Fed would most likely resume lifting rates again.

For now, the cards are with the homebuyers and they’re playing them well.

Facebook Twitter LinkedIn Telegram Whatsapp Pocket

Related Posts:

With the rise of mortgage rates comes a higher volume of mortgage applications, latest weekly surveys made separately by Freddie Mac and the Mortgage Bankers Association confirmed. On the mortgage rate side, the 30-year fixed mortgage rate increased for the first time this 2017. Meanwhile, mortgage applications are at their highest level since June. Interested in buying a home this year?» FREDDIE MAC’S...
Does taking over someone’s mortgage seem easier than getting your own mortgage? You might be in for a little surprise. Today, an assumable mortgage still requires approval, just like you would need if you took out your own mortgage. Looking for Current Mortgage Interest Rates? Click Here. There are benefits of assuming someone’s mortgage, though, especially if interest rates are higher now than the rate t...
FHA mortgages always include mortgage insurance. It’s not just until you owe less than 80% of the home’s value either. You pay the mortgage insurance for the life of the loan. While that’s not the best news you want to hear, the good news is that the insurance does decrease over time. Compare Offers from Several Mortgage Lenders. Keep reading to learn how mortgage insurance affects your payment to...
FHA loans are one of the more popular options for mortgage borrowers, some of the benefits of using an FHA loan is it offers lower down payments and they have more lenient lending standards. The Federal Housing Administration, also known as FHA, insures mortgage loans so borrowers who utilize this program are required to pay for mortgage insurance which protects the lender if the loan were to default. WHY CHOOS...
When you think about getting a mortgage, the first thing that comes to mind is the bank. Of course, banks offer a diverse array of home loan programs, and they are experienced where real estate lending is concerned. But are banks really your only choice when finding financing to buy a home? Many homebuyers consult friends and family first when they think about buying a home. This is a smart move and indeed, a ...
You’d think if you missed your mortgage payment due date (usually the 1st of the month) that your mortgage payment is late. That’s not the case though. You have a little longer than you think to get your mortgage payment into your lender before you pay the late fee. Compare Offers from Several Mortgage Lenders. STAY IN CONTACT WITH YOUR LENDER Some lenders start making collection phone calls after you miss...