Origination volumes expected to jump

by Kelli Rogers19 Jun 2013
Mortgage origination volumes are on the rise amid an improving housing market and falling delinquencies.
Trends from first quarter 2013 show a 16% year-over-year increase in mortgage origination volume, according to an analysis from Experian.
“We expect a significant jump in overall mortgage originations largely driven by net new mortgage trends,” said Linda Haran, senior director for Experian Decision Sciences. “That is a sentiment that I feel very confident in saying into the market not just by looking at the overall credit trends on the Experian credit file, but also really looking at overall economic factors.”
Builders are having a very strong quarter, new home construction is popping up and starting to explode in some key markets throughout the U.S., and there is an opportunity for that to accelerate and gain momentum in the summer months, Haran said. 
“By the time we look at 3rd quarter data, we’ll really see that come to fruition,” she said. 
In its latest report, the global information services company examined origination and delinquency data for mortgages and bankcards. 
The annual rise in origination volume was the eighth in the last eight quarters, Experian reported, pointing “to a consistently improving housing market.”
The report also noted average home prices continue to improve, with California leading the way at an average of $325,000. In terms of originated mortgage dollars, the Midwest rebounded as the new year kicked off, growing 27% year-over-year to $101 billion. It’s the first time in two years that the region has surpassed California, according to Experian.
Mortgage delinquency rates fell to multiyear lows last quarter, the company reported, though there was a slight increase in late-state 90- to 180-day delinquency rates “that may be the result of continued stress in some specific housing markets.”


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