Tri-Cities real estate loans reach record level


“The mortgage industry became even more active in the third quarter of 2020, with the housing market still functioning as if the recession caused by the pandemic did not exist. Buyers and homeowners, drawn by low mortgage rates, continued to queue for loans at levels not seen in more than a decade, ”said Todd Teta, director of products at ATTOM Data Solutions. “The only difference in the third quarter is that purchase loans overtook refinancing activity for the first time in over a year. However, we again cautiously note, as we have done with other recent market reports, that the pandemic and other factors could combine and halt the market boom. In the meantime, the third quarter stands out as another flagship quarter for lenders. “

Nationwide refinancing activity continued to account for the majority of home loans and continued to grow, but at a slower quarterly pace than purchase loans. It was the same for the local market.

Tri-Cities consumers launched nearly 4,000 home loans during the third quarter, a historic record. That’s an increase of 13% from the second quarter and 32.1% from the third quarter of last year.

Nationwide loans were up 17% from the second quarter and 45.1% from the third quarter of last year, according to ATOM Data Solution Residential Mortgage Origination Report.

Local buying arrangements lagged the refi market for the fourth consecutive quarter as homeowners took advantage of record rates. And while the trend for new loans was similar for the region’s two Metropolitan Statistical Areas (MSA), there was no variation in loan origination.

Kingsport-Bristol (Hawkins and Sullivan counties in NE Tenn. And Scott and Washington in SW Virginia) has had more purchase loans than the Johnson City MSA in all but one quarter since 2016, when the market started its current record streak.

But that’s where the similarities end.

There has been an increase in purchases and refi originations in the Johnson City MSA (Carter, Unicoi and Washington counties). Loan originations increased 28.9% from the second quarter and rewrites increased 15.4%.

Loans increased 19% at Kingsport-Bristol and refis increased 0.02%.

As purchases and refinances increase, Home Equity Loans (HELOCs) have continued to decline across the country. In the Kingsport-Bristol market, where they were down 1.6% compared to the second quarter. The Johnson City Metro Market provided the local contrast. HELOCs increased by 11.5% compared to the Q2 total.

David Hamilton, president of the Tri-Cities Mortgage Brokers Association, says much of the increase in purchase loans is due to people looking to relocate to the Tri-Cities area. “I am shocked at the number of people trying to relocate to our area,” he said.

Like realtors and builders, some local lenders are having their best years during the pandemic. However, much of the refinancing action is done online rather than with local loan stores.

So far this year, there have been 1,628 home loan originations in the Johnson City metro area, up from 1,483 in the same period last year. During the same period, 2,249 home loans came from Kingsport-Bristol, up from 1,959 in the first nine months of last year.

There have been 2,103 refi loans in the Johnson City metro area so far this year, up from 1,132 last year. Refi loans total 2,375 in the Kingsport-Bristol metropolitan area compared to 1,511 last year.

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Categories: REAL ESTATE

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