Mortgage loans originated on single-family homes and condos were up 17 percent year over year according to a new report from RealtyTrac.com, led by California, Florida and Massachusetts.
The majority of the loans were for refinancing and new mortgages for purchases were up only about 1 percent during the same year over year period.
Daren Blomquist
“A dip in interest rates early in the year combined with lowered mortgage insurance premiums for FHA loans breathed some life back into the refinancing market in the first quarter,” Daren Blomquist, vice president at RealtyTrac, said in the release.
“Meanwhile the purchase loan market remained largely missing in action despite tepid growth from a year ago,” he said in the release.
“The prime buying season still remains ahead, providing some hope that first-time homebuyers and other traditional buyers relying on traditional financing will come out in the woodwork in greater numbers in the coming months.”
Of the nearly 1.6 million loan originations in the first quarter, 471,822 were purchase loan originations, down 25 percent from the previous quarter and up less than 1 percent from a year ago, according to RealtyTrac’s first quarter 2015 U.S. Residential Loan Origination Report.
There were 1,080,043 refinance originations in the first quarter.
This is an increase of 6 percent from the previous quarter and an increase of 27 percent from a year ago.
California, Florida, Massachusetts saw biggest increases in mortgage loans originated
Metro areas with a population of at least 500,000 and the biggest increase in loan originations from a year ago were San Jose (up 72 percent), San Diego (up 64 percent), Oxnard-Thousand Oaks-Ventura, California (up 64 percent), Palm Bay-Melbourne-Titusville, Florida (up 61 percent), and Boston (up 54 percent).
Other major markets among the top 20 for biggest year-over-year increase in loan originations included Salt Lake City (up 53 percent), San Francisco (up 49 percent), Los Angeles (up 48 percent), Denver (up 44 percent), Seattle (up 40 percent), Portland (up 39 percent), Bridgeport, Connecticut (up 38 percent), and Richmond, Virginia (up 35 percent).
Markets with biggest increases in purchase loan originations in Florida, Ohio, Missouri
Metro areas with a population of at least 500,000 and the biggest increase in purchase loan originations from a year ago were Palm Bay-Melbourne-Titusville, Florida (up 72 percent), Dayton, Ohio (up 62 percent), Toledo, Ohio (up 36 percent), Tampa (up 32 percent), and Kansas City (up 32 percent).
Other major markets among the top 20 for biggest year-over-year increase in purchase loan originations from a year ago included Salt Lake City (up 18 percent), Orlando (up 17 percent), Atlanta (up 15 percent), Jacksonville, Florida (up 14 percent), St. Louis (up 13 percent), Miami (up 13 percent) and Phoenix (up 13 percent).
Loan origination increase led by VA, HELOC and FHA
There were a total of 995,968 conventional loan originations (backed by Fannie and Freddie) in the first quarter, representing 64.2 percent of all loan originations.
Conventional loan originations decreased 5 percent from the previous quarter but were up 13 percent from a year ago.
Conventional purchase loan originations in the first quarter decreased 27 percent from the previous quarter and were down 2 percent from a year ago, while conventional refinance originations increased 10 percent from the previous quarter and were up 21 percent from a year ago.
There were a total of 200,178 FHA loan originations in the first quarter, representing 12.9 percent of all loan originations. FHA loan originations increased 4 percent from the previous quarter and were up 18 percent from a year ago.
FHA purchase loan originations in the first quarter decreased 19 percent from the previous quarter but were still up 5 percent from a year ago, while FHA refinance loan originations jumped 34 percent from the previous quarter and were up 30 percent from a year ago.
There were a total of 99,555 Veterans Administration loans originated in the first quarter, representing 6.4 percent of all loan originations. VA loan originations in the first quarter were down 5 percent from the previous quarter but up 57 percent from a year ago. VA purchase loan originations in the first quarter decreased 25 percent from the previous quarter but were still up 4 percent from a year ago, while VA refinance originations increased 12 percent from the previous quarter and were up 119 percent from a year ago.
There were a total of 238,359 Home Equity Lines of Credit originated in the first quarter, representing 15.4 percent of all loan originations. HELOC originations were down 17 percent from the previous quarter but still increased 32 percent from a year ago.
Report methodology
RealtyTrac analyzed recorded mortgage and deed of trust data for single family homes, condos and town homes for this report. Each recorded mortgage or deed of trust was counted as a separate loan origination. Dollar volume was calculated by multiplying the total number of loan originations by the average loan amount for those loan originations.
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