by Calculated Risk on 4/24/2014 08:08:00 PM
Thursday, April 24, 2014
From Nick Timiraos at the WSJ: Demand for Home Loans Plunges
Lenders originated $235 billion in mortgage loans during the January-March quarter, down 58% from the same period a year ago and down 23% from the fourth quarter of 2013, according to industry newsletter Inside Mortgage Finance.Note: Many of the smaller lenders focus on the home purchase market and many of these small lenders are not included in the weekly MBA index. That is why the MBA purchase index is down about 18% year-over-year, but actual purchase activity is flat (according to Inside Mortgage Finance).
The decline in mortgage lending last quarter stemmed almost entirely from the slide in refinancing. Loans for home purchases were basically flat from a year earlier and down from the fourth quarter.
The top 25 lenders accounted for 63.9% of all originations in the first quarter, also a 14-year low. That is down from 65.3% at the end of last year and a high of 90.9% in 2008, according to Inside Mortgage Finance.
• At 9:55 AM ET, the Reuter's/University of Michigan's Consumer sentiment index (final for April). The consensus is for a reading of 82.5, down from the preliminary reading of 82.6, but up from the March reading of 80.0.
Posted by Calculated Risk on 4/24/2014 08:08:00 PM