New data was released by the Black Knight Financial Services, Inc. (BKFS) and reported a decline in mortgage loan originations during the first quarter of 2017. The most recent Mortgage Monitor Report shows a 34 percent drop in originations for the last quarter of 2016.
More Mortgage Monitor Report Highlights
- In the Q1 2017, the first-lien mortgage originations fell 9.0 percent to $372 billion. This is the lowest since the fourth quarter of 2014.
- The low activity is led by refinancing lending, marking a 45 percent decline on a quarterly basis. It also decreased 20 percent from the same time last year.
- Refinance activities among borrowers with credit scores 740 and higher have also greatly decreased. Volume is down by 50 percent.
- Purchase loan originations declined by 21 percent on a quarter-over-quarter comparison. However, it increased 3.0 percent during the same month in 2016.
- This year’s first quarter also recorded the slowest annual growth rate since Q4 of 2013, at 3.0 percent.
Black Knight’s ‘First Look’ on mortgage data in April 2017 includes:
- The country’s loan delinquency rate is at 4.08 percent. There is 12.93 percent month-over-month change.
- On non-current loans (combined total of delinquencies and foreclosures as a percent of active loans):
> States with the highest percentages: Mississippi, Louisiana, Alabama, West Virginia, Maine
>States with the lowest percentages: Oregon, Montana, Minnesota, North Dakota, Colorado
- On seriously delinquent loans (loans that re 90-days or more past due), the states with highest percentages are Mississippi, Louisiana, Alabama, Arkansas, Tennessee
Even with the rates hovering around all-time lows, Home affordability still has to escape from near post-recession lows.
BKFSData & Analytics Executive Vice President Ben Graboske said, “Overall, first-lien mortgage originations fell by 34 percent in the first quarter of 2017. As expected, the decline was most pronounced in the refinance market, which saw a 45 percent decline from Q4 2016 and was down 20 percent from last year.” He cited that the interest rate’s recent upward trend may have caused this decline.