We got some good news! Home inventories may be down, but first time home buyers are up. Sales this spring to first-time homebuyers were at their highest level since 1999. Woo-hoo!!! First-time homebuyers made up about 57% of the purchase mortgage market, with almost 970,000 new loans. That’s good for business. But, what happened to all the repeat buyers? Are…
Right now, about 67 million people comprise what is known as the Millennial generation. That represents about one-quarter of the country’s purchasing power and is a lot of clout for one group. But, as we have learned things are quite different with this generation. They don’t do things like prior generations. For one thing, they don’t use credit and credit…
The government, the agencies, consumer groups, and trade organizations are all looking for more ways to increase homeownership. The homeownership rate has hit a wall and seems to be stagnant at its lowest levels in the past 50 years. In part, this is due to fewer homes now on the market for sale, with even fewer in the ‘affordable’ category;…
With refinances seemingly having run their course and a shortage of homes for sale, the forecast for mortgage lending is not so good. A recent lender survey by Fannie Mae revealed that it’s no surprise that many lenders are pessimistic about profit margins. They believe there will be continued consolidation of lenders with major competition among those who remain, compounded…
Will the loan originators, as we know them today, be replaced by technology anytime soon? That is one of the big questions on many a lender’s and LO’s minds. Lenders have long struggled with the challenges of hiring, training, retaining, and paying top notch loan originators. The LO’s share of what the lender’s loan profit has been increasing and for…
A tight inventory of existing homes for sale seems to be spurring an uptick in new home purchases. According to MBA stats, mortgage applications for new homes jumped in July by about 5% over last year. Although, Applications decreased by 12% from the prior month. Overall applications for new construction are on the rise as fewer existing homes are for…
