Mortgage originations rebound in second quarter
There was an increase in purchase loan originations and HELOCs in the second quarter of 2016 but despite those increases, overall mortgage originations fell year-over-year.
ATTOM Data Solutions’ RealtyTrac shows 1.9 million originations on properties of 1 to 4 units in the three months, up 26 per cent from the previous quarter but 4 per cent below the same period of 2015.
Refinance loans were down 12 per cent in the quarter year-over-year while purchase originations were up 1 per cent and HELOCs increased 5 per cent.
“Homeowners are increasingly tapping the home equity
that many have built up during the last four years of rapidly rising home prices,” said Daren Blomquist, senior vice president at RealtyTrac.
“Meanwhile those rapidly rising prices are also locking some non-cash buyers out of red-hot but high-priced markets, resulting in weaker purchase loan originations in places like Denver, San Francisco, Portland and Dallas. On the other hand, more affordable markets such as Cleveland, Kansas City and Boise are posting double-digit increases in purchase loan originations.”
Pending sales second highest in a decade
Pending home sales nationwide reached their second highest level in over a decade, the National Association of Realtors says.
NAR’s pending home sales index rose 1.3 per cent to 111.3 in July compared to June and was 1.5 per cent higher than July 2015. The figures were largely driven by an increase in the West.
“The index in the West last month was the highest in over three years, largely because of stronger labor market conditions. If homebuilding increases in the region to tame price growth and alleviate the ongoing affordability concerns, the healthy rate of job gains should support more sales,” commented NAR chief economist Lawrence Yun.
The Northeast and South saw increases in the index of 0.8 per cent while the Midwest declined 2.9 per cent but remains more than 1 per cent higher than a year earlier.
Landlords find better way to cash in on LA rentals
Landlords in Los Angeles can make more income from Airbnb than from traditional rentals.
A report from Inside Airbnb and the Los Angeles Alliance for a New Economy found that on average just 83 days of rentals on Airbnb brings in more cash for landlords than a year-long lease, creating a potential crisis for the city’s housing market.
The figures cast doubt on the effectiveness of Los Angeles officials’ plans to introduce legislation limiting rentals through Airbnb and similar services to 180 days.
The report calls for that limit to be cut to 90 days which would reduce the appeal of short-term rentals for landlords to increase rental supply for long-term tenants.