- Advertisement -
Home News Trillion-dollar quarter

Trillion-dollar quarter

- Advertisement -

The second quarter recorded the largest quarterly origination volume in its history. According to Black Knight data released Tuesday, nearly $ 1.1 trillion in real estate liens were accrued in the quarter.

"Although the nation was hit by a pandemic for much of the quarter, there was a record-breaking increase in mortgage origins in the second quarter of 2020, driven by the record-low interest rate environment," said Ben Graboske, president of Black Knight Data & Analytics. "Nearly $ 1.1 trillion in first lien mortgages was raised in the second quarter of 2020. This is the largest quarterly origination volume we have seen since the metric was first reported in January 2000."

Refi loans were up more than 60% from the previous quarter and up more than 200% from the second quarter of last year, which is nearly 70% or all of the originals of the second quarter by dollar value. Black Knight said origins of purchases decreased 8% year over year as COVID-19 impacted the traditional spring home buying season. However, data on mortgage lockdowns – a key indicator of lending – suggests that the home-buying season has not been canceled, just postponed to the third quarter.

} Purchase bans in the third quarter of 2020 have already offset the losses of a second quarter hit by COVID – and a few more – based on normal seasonal expectations, ”said Graboske. “Indeed, interest rate freezes suggest that third quarter lending could break through typical seasonal trends and climb 30-40%, which would take us to a new record high. While refinancing activity was at a record high in the second quarter, the Refi-Lock data suggests that refinancing volumes could increase further in the third quarter. "

According to Graboske, Refis' bans, which are expected to close in the third quarter, are already up 20% over the second quarter, assuming the ban on closing is 45 days.

"Given current market conditions and the recent delay in the 50 basis point fee for GSE refinancing through December, we would expect the near-record low interest rates to continue to spur the market," he said. "After all, there are still almost 18 million homeowners with good credit ratings and at least 20% equity who can lower their current mortgage by at least 0.75% by refinancing."

- Advertisement -
- Advertisement -

Stay Connected

16,985FansLike
2,458FollowersFollow
61,453SubscribersSubscribe

Must Read

What's all of the Yellen About? Financial Coverage and the Federal Reserve: Crash Course Economics #10

This week on Crash Course Economics, we're talking about monetary policy. The reality of the world is that the United States (and most of...
- Advertisement -

How you can Full the PPP Mortgage Forgiveness Utility Type 3508EZ

NAR's latest video explains how PPP recipients may be eligible for and apply for loan forgiveness if certain criteria are met. The video provides...

How-to Repair Your Ugly Garden With This Single Garden Software

Ugly Lawn? Fix your ugly lawn this this new weed and feed available at every big box store in the country. It's a special...

Mortgage Charges At this time, July 31, & Price Forecast For Subsequent Week

Today's mortgage and refinancing rates Average mortgage rates fell slightly yesterday. And the mostly slow drift towards lower interest rates...

Related News

What's all of the Yellen About? Financial Coverage and the Federal Reserve: Crash Course Economics #10

This week on Crash Course Economics, we're talking about monetary policy. The reality of the world is that the United States (and most of...

How you can Full the PPP Mortgage Forgiveness Utility Type 3508EZ

NAR's latest video explains how PPP recipients may be eligible for and apply for loan forgiveness if certain criteria are met. The video provides...

How-to Repair Your Ugly Garden With This Single Garden Software

Ugly Lawn? Fix your ugly lawn this this new weed and feed available at every big box store in the country. It's a special...

Mortgage Charges At this time, July 31, & Price Forecast For Subsequent Week

Today's mortgage and refinancing rates Average mortgage rates fell slightly yesterday. And the mostly slow drift towards lower interest rates...

Charlotte Mortgage Lender Explains How The Dodd Frank Act Impacts Your Potential To Get A Mortgage

http://ecoastmortgage.com In January, the Consumer Financial Protection Bureau's new qualified mortgage (also known as the ability-to-repay) rule went into ...
- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here