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| Daren Blomquist |
IRVINE, Calif. –— ATTOM
Data Solutions, the nation’s leading source for comprehensive housing data and
the new parent company of RealtyTrac, released its Q2 2016 U.S. Residential
Property Loan Origination Report, which shows nearly 1.9 million (1,868,187)
loans were originated on U.S. residential properties (1 to 4 units) in the
second quarter of 2016, up 26 percent from the a two-year low in the previous
quarter quarter but down 4 percent from a year ago.
The loan origination
report is derived from publicly recorded mortgages and deeds of trust collected
by ATTOM Data Solutions in more than 950 counties accounting for more than 80
percent of the U.S. population.
The 4 percent
year-over-year decrease in total originations was driven by a 12 percent
year-over-year decrease in refinance originations — the second consecutive
quarter with an annual decrease.
Conversely, purchase originations increased 1
percent from a year ago — the eighth consecutive quarter with an annual
increase — and Home Equity Line of Credit (HELOC) originations increased 5
percent from a year ago — the 17th consecutive quarter with an annual increase.
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| Michael Mahon |
“Homeowners are
increasingly tapping the home equity that many have built up during the last
four years of rapidly rising home prices,” said Daren Blomquist, senior vice president at RealtyTrac.
“Meanwhile those rapidly
rising prices are also locking some non-cash buyers out of red-hot but high-priced
markets, resulting in weaker purchase loan originations in places like Denver,
San Francisco, Portland and Dallas.
"On the other hand, more affordable markets
such as Cleveland, Kansas City and Boise are posting double-digit increases in
purchase loan originations.”
Dallas, Birmingham,
Phoenix post biggest increases in HELOC originations
Among the 73 metropolitan
statistical areas with a population of at least 500,000 and at least 5,000
total loan originations in Q2 2016, those with the biggest year-over-year
increases in HELOC originations were Dallas (up 36 percent); Birmingham,
Alabama (up 30 percent); Phoenix (up 28 percent); Sacramento (up 27 percent);
and Seattle (up 25 percent).
“The combination of
rapidly rising home prices and historically low interest rates has resulted in
a substantial increase in the number of homeowners taking out a home equity
line of credit (HELOC) in the greater Seattle area,” said Matthew Gardner, chief economist at Windermere Real Estate,
covering the Seattle market.
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| Matthew Gardner |
“I believe the popularity
of HELOCs compared to cash-out refinances is likely due to the fact that
interest rates are traditionally lower for HELOCs.
“Additionally, if equity
is withdrawn during a refinance, homeowners must begin paying back the funds
immediately, whereas a HELOC allows you to use the funds as needed.”
Other markets among the
top 10 for biggest year-over-year increase in HELOC originations were and
Columbus, Ohio (up 25 percent); Provo-Orem, Utah (up 24 percent); Denver (up 24
percent); Orlando (up 24 percent); and Cleveland, Ohio (up 23 percent).
“With an aging housing
inventory across Ohio, we are seeing a resurgence of consumers electing to
invest in their current homes, and utilize the increased availability of HELOCS
for funding such needed repairs as new roofs, remodeling, and home addition
projects,” said Michael Mahon,
president at HER Realtors, covering the Ohio housing markets of Dayton,
Columbus and Cincinnati. HELOC originations increased 21 percent in Dayton and
17 percent in Cincinnati compared to a year ago.
“With our strong
appreciation in South Florida over the past few years, many property owners are
hedging their bets and locking in a low-rate HELOC that gives them flexibility
and options in the coming years,” said Mike
Pappas, CEO and president at the Keyes Company, covering South Florida,
where HELOC originations increased 19 percent in Q2 2016 compared to a year
ago.
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| Mike Pappas |
Cleveland, Kansas City,
Boise post biggest increase in purchase originations
Among the 73 metro areas
analyzed in the report, those with the biggest year-over-year increases in
purchase loan originations in Q2 2016 were Cleveland, Ohio (up 31 percent);
Kansas City (up 21 percent); Boise, Idaho (up 20 percent); Dayton, Ohio (up 17
percent); and Rochester, New York (up 15 percent).
Other markets among the
top 10 for biggest year-over-year increases in purchase loan originations were
Columbia, South Carolina (up 13 percent); Atlanta (up 13 percent); Milwaukee
(up 12 percent); Deltona-Daytona Beach-Ormond Beach, Florida (up 11 percent);
and Colorado Springs (up 11 percent).
Denver, Houston, San
Francisco post decreases in purchase loan originations
Among the 73 metro areas
analyzed in the report, those with the biggest year-over-year decreases in
purchase loan originations in Q2 2016 were Honolulu, Hawaii (down 16 percent);
Denver (down 8 percent); Louisville, Kentucky (down 7 percent); Houston (down 7
percent); and San Francisco (down 6 percent).
Other markets among the
top 10 for biggest year-over-year declines in purchase loan originations were
Bakersfield, California (down 6 percent); Portland (down 5 percent);
Oxnard-Thousand Oaks-Ventura, California (down 5 percent); Dallas (down 5
percent); and Detroit (down 4 percent).
For a complete copy of the company’s news release,
please contact:
Jennifer von Pohlmann
949.502.8300, ext. 139
Data and Report Licensing:
800.462.5193
