BYTHE NUMBERS
REALTYTRAC
Housing MarketWatch REPORT SHOWS HOME LOAN ORIGINATIONS DOWN, BUT PURCHASE LOAN MARKET CONTINUES SLOW AND STEADY GROWTH.
by RealtyTrac
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(up 23 percent); Orlando, Florida (up 23 percent); Portland, Oregon (up 22 percent); Cincinnati, Ohio (up 21 percent); and Tampa, Florida (up 20 percent). “Loosening credit, low interest rates and the first-time Millennial buyers moving into the South Florida real estate market all add up to an 8 percent increase in purchase loan originations for the first quarter this year over last year’s first quarter,” said Mike Pappas, CEO and president at The Keyes Company, covering South Florida. “Our rising prices and increasing equity are giving confidence to homeowners as we have seen HELOCs increase 12 percent year-over-year.” BIGGEST PURCHASE LOAN INCREASE Metro areas with the biggest year-over-year percentage in- crease in purchase originations were Baltimore, Maryland (up 26 percent); Tucson, Arizona (up 18 percent); Louisville, Ken- tucky (up 17 percent); Minneapolis-St. Paul (up 14 percent); and Nashville, Tennessee (up 14 percent). Other metro areas with a more than 10 percent increase in purchase loan originations from a year ago were Washington, D.C. (up 13 percent); Cleveland, Ohio (up 13 percent); Atlanta, Georgia (up 12 percent); Indianapolis, Indiana (up 12 percent); Kansas City (up 11 percent); St. Louis (up 11 percent); and Chi- cago (up 11 percent). BIGGEST REFI DECREASE Metro areas with the biggest year-over-year percentage decrease in refinance originations were Cincinnati, Ohio (down 35 percent); Philadelphia, Pennsylvania (down 32 percent); Mil- waukee, Wisconsin (down 32 percent); Raleigh, North Carolina (down 31 percent); and Salt Lake City, Utah (down 29 percent). Other metro areas with a 25 percent or bigger decrease in refinance originations from a year ago were Oxnard-Thou- sand Oaks-Ventura, California (down 28 percent); St. Louis (down 28 percent); Sacramento, California (down 28 per-
ealtyTrac’s Q1 2016 U.S. Residential Property Loan Origination Report shows 1.4 million (1,415,511) loans were originated on U.S. residential properties (1 to 4 units) in the first quarter of 2016, down 12 percent from the previous quarter and down 8 percent from a year ago to the lowest level since the first quarter of 2014. The loan origination report, released on May 12, 2016, is derived from publicly recorded mortgages and deeds of trust collected by RealtyTrac in more than 950 counties, account- ing for more than 80 percent of the U.S. population. The year-over-year decrease in total originations was driv- en by a 20 percent year-over-year decrease in refinance origi- nations even while purchase originations increased 3 percent from a year ago and Home Equity Line of Credit (HELOC) originations increased 10 percent from a year ago. “After a surprisingly strong 2015, the mortgage refi market started running out of steam in the first quarter of 2016 despite lower mortgage interest rates,” said Daren Blomquist, senior vice president at RealtyTrac. “Meanwhile, the purchase loan market continued the pattern of slow-and-steady growth that it has been following the past two years, and HELOC originations increased on a year-over-year basis for the 16th consecutive quarter, showing that borrowers are regaining both home value and the confidence needed to increasingly leverage their home equity.” BIGGEST HELOC INCREASE Among 50 metropolitan statistical areas with at least 5,000 total loan originations in the first quarter, those with the biggest year-over-year percentage increase in HELOC origi- nations were Dallas, Texas (up 35 percent); Louisville, Ken- tucky (up 28 percent); Seattle, Washington (up 25 percent); Sacramento, California (up 25 percent); and Columbus, Ohio (up 23 percent). Other metro areas with a 20 percent or more increase in HELOC originations from a year ago were San Antonio, Texas
124 | think realty magazine july :: august 2016
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