Mortgage originations hit 3-year high
First-lien mortgage originations in the second quarter of 2016 saw their highest volume in any quarter since Q2 2013 but refinance loans remain below last year’s levels.
Black Knight Financial’s data shows that $518 billion of new first-lien mortgages were originated in the three months to the end of July 2016, as low interest rates boosted demand.
While purchase originations jumped more than 50 per cent from Q1, refinances saw only an eight per cent increase over that period, and were actually down from the same time last year,” commented Black Knight Data & Analytics’ executive VP Ben Graboske. “That said, refinance lending has risen for three consecutive quarters and accounted for $221 billion in originations in Q2.”
Distressed sale activity made up 7 per cent of all residential transactions in the second quarter with around two-thirds of those REO sales.
Home prices up 6 per cent in July
Nationwide home prices increased 6 per cent year-over-year in July according to the latest figures from CoreLogic.
Its home price index, which includes distressed sales, was up 1.1 per cent in the month compared to June.
“If mortgage rates continue to remain relatively low and job growth continues, as most forecasters expect, then home purchases are likely to rise in the coming year,” said Dr. Frank Nothaft, chief economist for CoreLogic. “The increased sales will support further price appreciation, and according to the CoreLogic Home Price Index, home prices are projected to rise about 5 percent over the next year.”
The Western region showed the strongest price gains with Denver, Portland and Seattle all showing double-digit growth over the year.
Reba McEntire selling Nashville estate
Country star Reba McEntire has listed her 83-acre estate near Nashville following the disposal of her Beverly Hills mansion last year.
The Tennessee home includes 7 bedrooms, 6 bathrooms, pool room, home theater and wine room and is listed at $7.9 million.
Known as Starstruck Farm, the estate also has an 8-car garage and an equestrian facilities including indoor and outdoor arenas, 12 fenced paddocks and 16 stalls.