Originations Up Part 2

As a continuation to a previous blog (Originations Up Pt-1) concerning the LPS December Mortgage Monitor report that said mortgage originations rose to 8.6 million in 2012, the report also revealed that conforming loan-to-value thresholds were improving giving rise to more homeowners being able to refinance their home mortgages.

According to the report nearly four million loans last year that previously could not be refinanced due to conforming loan-to-value thresholds that made them ineligible would now meet those qualifying standards. Additionally another 3.4 million loans that are “on the cusp” of the needed conforming loan-to-value thresholds also stand to benefit for refinancing if the current pattern of rising home prices continues.

More specifically the report stated that loan delinquency in the U.S. rose 7.17 percent in December, up slightly by 0.7 percent from November. At the same time the total U.S. pre-sale foreclosure inventory rate dropped to 3.44 percent a 2.0 percent decline from November.

On a year-to-year basis the delinquency rate declined by 9.1 percent in 2012, this compared to one year earlier when delinquencies fell by 6.9 percent year over year. Foreclosure rates fell by 18 percent in 2012 bringing the overall national rate down to 3.44 percent; this is the lowest rate since the summer of 2009.

The states with highest loan delinquency rates were Florida, Mississippi, New Jersey, Nevada and New York. Contrasting this the states with the lowest non-current loan rates were Montana, Wyoming, South Dakota, Alaska and North Dakota.

According to the Mortgage Bankers Association, mortgage interest rates on 30-year conforming fixed-rate loans ($417,500 or less) increased to 3.67 percent from 3.62 percent the previous week, which is the highest level since September 2012. The contract interest rate for 30-year fixed-rate mortgages has increased for six of the last seven weeks.   Since rates can change daily and from lender-to-lender and state-to-state, these rates can vary…and are likely to continue a gradual climb upward.

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