Guaranteed Rate, one of the ten largest retail mortgage companies in the nation, issued its first national mortgage data summary, providing a snapshot of the U.S. mortgage market. The data is based on more than 55,000 loans funded by Guaranteed Rate coast to coast during 2013, totaling nearly $16 billion.
The report said overall loan volume was up by 5 percent in 2013 on a year-over-year basis, fueled by growth in purchase loan volume of 17 percentage points compared to 2012. The growth in purchase loans offset a year over year decline in refinancing activity, an industrywide slowing caused by the mid-year rise in interest rates. Overall loan volume was split nearly evenly between purchase and refinance volume in 2013, where 2012 saw nearly two-thirds of loan volume coming from the refinance market.
In addition:
- The median purchase price rose 13 percent in 2013, tracking a national trend of rising home prices and a lack of housing supply in many markets nationwide.
- The 30-year fixed loan remained the most popular option for homebuyers, accounting for approximately 73 percent of overall loan volume, while 15-year fixed loans accounted for 13 percent, and ARMs accounted for 9 percent. Total ARM volume increased by nearly 50 percent year over year.
- Nationally, the average credit score per loan held steady, declining less than one percent compared to 2012. The average real estate taxes paid per loan declined approximately 9 percent, from $5,933 to $5,377.
- The 20 percent down payment was the most popular option for homebuyers in 2013, accounting for 55 percent of all purchase loan volume, a 5-point percentage increase from 2012.
- Investor activity continued to climb steadily in 2013, as the total number of loans for investment properties rose 35 percent over 2012, boosting their percentage of overall loan volume by 2 percent year over year to 8 percent.
“These numbers reflect the mortgage market of 2013 – a strong purchase market and a refinance market falling off after interest rates rose at the start of the third quarter,” said Ted Ahern, Guaranteed Rate’s chief financial officer. “The lack of housing inventory in many areas is helping to boost home prices, but the increase in investor activity is a positive sign for the market moving forward.”