Purchase Money Mortgages Are Flying High As Refis Dry Up

Purchase Money Mortgages Benefit From Higher Interest Rates As Origination Of Mortgage Refinance Dry Up

The half-point increase in mortgage interest rates since January has all but killed mortgage refinance. Purchase Money Mortgages now outnumber mortgage refinance loans by a 3:1 margin.
It also appears mortgage refinance sector will be dead for a while.  
Ellie Mae just published it’s Origination Insight Report and it doesn’t look good for originators specializing in refinance mortgages. The report shows that the 71% of all loans closed in July were purchase loans. Only 29% of closed loans were mortgage refinance loans
This the second month in a row that mortgage refinances made up under 30% of the loans originated.
Those figures also represent the lowest percentage of refinance mortgages since Ellie Mae began tracking this data in 2011. This is also the highest number of origination of purchase money mortgages since 2011.

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