Guardian Residential Lending Industry News, September 3-10, 2020

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In the Know: A Roundup of This Week’s Local and National Real Estate Stories

Mortgage lending sets a 20-year record with $1.1T in Q2 (HW, Sept. 9)

And refi volume for the third quarter will be even higher

U.S. lenders issued a staggering $1.1 trillion in home loans between April and June, marking the biggest quarter in at least two decades, according to mortgage data firm Black Knight. The record quarter highlights the growing disparity between homeowners who are primed to take advantage of perfect conditions, and those who are simply desperate to not lose their homes.

The surge in activity was driven primarily by an unprecedented rush to refinance. With rates ticking down to historic lows, homeowners tested lenders’ capacity limits with more than 2.3 million refinancings in the quarter, the most in nearly 17 years. Seventy percent of the total loans originated by dollar value in the second quarter were refinancings, according to Black Knight’s data.



Q2 Saw Highest Origination Volume in History, Q3 Might be Even Better (Mortgage News Daily, Sept. 8)

The second quarter of this year was a miserable on many levels, but mortgage origination volume was not one of them. Black Knight’s current Mortgage Monitor reports that the second quarter saw the largest quarterly origination volume since the company began tracking it at the beginning of 2000. Low interest rates drove refinancing up by more than 60 percent compared to the previous quarter and 200 percent higher than in the second quarter of 2019. There were $1.1 trillion in first lien mortgages originated during the period, 70 percent of it through refinancing.



Why Record-Low Mortgage Rates Could Keep Falling (The M Report, Sept. 8)

According to a recent post published by  the experts at Bankrate, mortgage rates are set to decline even further as fall approaches. Currently, borrowers have been blessed with record low mortgage rates (in September, the typical 30-year mortgage was hovering at just 3.10%), and it looks like they may have even more cause to celebrate within the coming months.

Never certain exactly what the future holds, the following six factors lead experts to believe that interest rates will fall even further come fall…



Housing Shortage Reaches More Affordable Cities (The M Report, September 4)

Forty of the nation’s top 50 metro areas have reported a decline in housing supply since February, according to new data released by Redfin. 



Zoom Towns And The New Housing Market For The 2 Americas (NPR, Sept. 8)

…Like a lot of other vacation destinations — the Hamptons, Cape Cod, Aspen and so on — the Truckee housing market is booming during the coronavirus pandemic. It’s up over 23% since last year, according to data from Redfin, a real estate brokerage. Truckee is part of a trend that realtors and journalists are calling “Zoom towns,” places that are booming as remote work takes off.

But Zoom towns aren’t the only places where home prices are booming. Pretty much everywhere except Manhattan and San Francisco — places where home prices had already reached historic peaks — it’s a great time if you want to sell your house. “Right now, national home prices are up 8% from this time last year, so quite a big increase,” says Daryl Fairweather, the chief economist of Redfin.


Home prices suddenly see biggest gains in 2 years (CNBC, Sept. 1)

Exceptionally strong demand, historically low supply and record low mortgage rates are combining to fuel the fastest home price growth since 2018.

Nationally, home prices in July were 5.5% higher than in 2019. That is a marked increase from the 4.3% annual gain seen in June, according to CoreLogic.

Falling mortgage rates helped bolster the pent-up demand from spring, when home sales ground to a halt due to the start of the coronavirus pandemic. The average rate on the popular 30-year fixed fell below 3% for the first time even in July, giving buyers additional purchasing power.


These 10 small cities could become the next work-from-home destinations (CNBC, Sept. 4)

Bend / Redmond and Kapaa, HI, make the list…


Thanks for reading.