* News from our partner Wells Fargo
Market in Review: The Wells Fargo View
During the first quarter of 2009, the mortgage industry experienced strong origination activity due to a number of factors including the ongoing low interest rate environment, a drop in the national median home price, an abundance of homes on the market and new government programs that are available to encourage homeownership, as well as refinances.
According to Inside Mortgage Finance, mortgage originations increased by 71%. In total, an estimated $445 billion of single-family mortgage loans were made.
Of the originations in first quarter, the May 29 issue of Inside Mortgage Finance showed that 78% of originations were for refinances and 22% were for purchase money mortgages.
Credit and financing options continue to be available to qualified borrowers. Consumers should be aware that when obtaining a loan, it’s likely they will be asked to verify their income, demonstrate a solid credit history, and bring a down payment to the table.
• According to results released by the National Association of REALTORS® on May 12, the national median home price of single family homes sold in the first quarter was $169,000, a 6.2% decline from fourth quarter 2008.
• In addition, the Center for Housing Policy recently reported that between 2007 and 2008, the income needed to purchase a median-priced home dropped in 194 of 199 metropolitan areas.
These factors appear to demonstrate that the tide may be turning and home inventories are stabilizing in some areas of the country.
