RealtyTrac: Loans for homes, condos up 23 percent from year ago
Data compiled in the company’s “Q2 2015 U.S. Residential Loan Origination Report” showed that loans for single-family homes and condos were up 22 percent from the first quarter of this year.
“The rise in loan originations, particularly the sharp rise in FHA purchase originations, indicates the FHA premium reduction at the end of January really is having a big impact, pushing people off the fence to purchase,” Daren Blomquist, vice president at RealtyTrac, said. “The average loan amount for FHA purchase loans increased from $187,718 in the first quarter of 2011 to $197,315 in the second quarter of 2015 (a 16-quarter high), as the lower FHA premium gave those buyers more buying power.”
The total dollar volume of loans originated in the second quarter was nearly $540 billion, up 14 percent from the first quarter and up 29 percent from a year ago.
Refinance originations accounted for nearly $307 billion in the second quarter, or 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.