This Week in Real Estate: Aug. 17, 2015

image001
This Week in Real Estate was a week of releases with multiple reports of second quarter findings and results including home prices, loan originations and distressed properties. Below are a few of the highlights from the second week in August that influence our business:
 
* Home Prices Rise in Nearly All Metro Areas in Second Quarter. The National Association of Realtors on Tuesday said that home prices in the second quarter rose in 163 of 176 metro areas. The median existing single-family home price rose $229,400 in the second quarter, up 8.2% from a year earlier. That was a slightly faster rate of increase than the 7.1% price rise seen in the first quarter. In the second quarter, 34 metro areas reported double-digit annual price gains, compared with 51 that reported such gains in the first quarter. The average supply of homes in the second quarter was 5.1 months, down from 5.5 months a year ago. Total existing-home sales, including single family and condo, increased 6.6 percent to a seasonally adjusted annual rate of 5.30 million in the second quarter from 4.97 million in the first quarter, and are 8.5 percent higher than the 4.89 million pace during the second quarter of 2014. In the West, existing-home sales climbed 8.1 percent in the second quarter and are 8.1 percent above a year ago. The median existing single-family home price in the West increased 9.6 percent to $325,200 in the second quarter from the second quarter of 2014. 

 

* Residential Loan Originations Up 23 Percent. RealtyTrac released its Q2 2015 U.S. Residential Loan Origination Report Thursday, which shows 1,950,267 loans were originated on single family homes and condos in the second quarter, up 22 percent from the previous quarter and up 23 percent from a year ago to the highest level since the their quarter 2013. The total dollar volume of loans originated in the second quarter was nearly $540 billion, up 14 percent from the previous quarter and up 29 percent from a year ago. Refinance originations represented nearly $307 billion in the second quarter, 56.7 percent of total loan origination dollar volume, and purchase loan originations represented nearly $234 billion, 43.3 percent of total origination dollar volume. Of the more than 1.9 million loan originations in the second quarter, 737,824 were purchase loan originations, up 9 percent from a year ago. There were 1,212,442 refinance originations in the second quarter, an increase of 9 percent from the previous quarter and up 32 percent from a year ago. 
 
Mortgage Delinquencies and Foreclosures Continue to Drop in 2Q15. The delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 5.30 percent of all loans outstanding at the end of the second quarter of 2015. This was the lowest level since the second quarter of 2007. The delinquency rate includes loans that are at least one payment past due but does not include loans in the process of foreclosure. The percentage of loans in the foreclosure process at the end of the second quarter was 2.09 percent. This was the lowest foreclosure inventory rate since the fourth quarter of 2007. The serious delinquency rate, the percentage of loans that are 90 days or more past due or in the process of foreclosure, was 3.95 percent. This was the lowest level since the fourth quarter of 2007. 
 
* Mortgage Credit Availability Rises in July. Mortgage credit availability increased in July according to the Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association. The MCAI increased 2.9 percent to 125.5 in July. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of a loosening of credit. Of the four component indices, the Conventional MCAI saw the greatest loosening (up 5.2 percent over the month) followed by the Jumbo MCAI (up 4.7 percent), the Government MCAI (up 0.9 percent), and the Conforming MCAI (up 0.4 percent). 

 

Have a productive week!

Jason

Leave a Reply

*

©2016 BHH Affiliates, LLC. An independently operated subsidiary of HomeServices of America, Inc., a Berkshire Hathaway affiliate, and a franchisee of BHH Affiliates, LLC. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc. Equal Housing Opportunity.