SYS-CON MEDIA Authors: ITinvolve Blog, Vormetric Blog, Jason Bloomberg, Liz McMillan, Pat Romanski

News Feed Item

Guaranteed Rate Launches Inaugural National Mortgage Data Summary

Snapshot Shows Trends in Mortgage Market Across U.S., Major Markets

CHICAGO, IL--(Marketwired - February 10, 2014) - 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.

Overall loan volume was up by 5% nationwide 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% in 2013, tracking a national trend of rising home prices and lack of housing supply in many markets nationwide.
  • The 30-year fixed loan remained the most popular option for homebuyers, accounting for approximately 73% of overall loan volume, while 15-year fixed loans accounted for 13%, and ARMs accounted for 9%. Total ARM volume increased by nearly 50% 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%, from $5,933 to $5,377.
  • The 20% down payment was the most popular option for homebuyers in 2013, accounting for 55% 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% over 2012, boosting their percentage of overall loan volume by 2% year over year to 8%.

"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."

Guaranteed Rate also issued summaries of mortgage activity in five major U.S. markets:

New York/New Jersey metro: Rising home values were the big story in this area, as the median purchase price jumped 21 percent over 2012, from $405,000 to $490,500. Purchase loan volume went up 12 percentage points over the previous year to 49% of overall volume. ARM volume tripled year over year to 18% of total loan volume in 2013 from 6% in 2012. Investment property loan volume ticked up 1 percentage point to 6% of overall volume.

Chicago metro: Purchase loan volume leaped 20 percentage points over 2012 to 52% of overall loan volume in 2013, with a corresponding drop in refinance volume due to higher rates. Median purchase price for the region went up 7 percent year over year, from nearly $276,000 to $296,000. Median prices in the city of Chicago also went up 10%, from $324,000 to $355,300. ARM volume increased 3 percentage points in 2013 to 11% of overall loan volume. Investment property loans went up 1 percentage point to 7% of total volume across the area.

Southern California (Los Angeles/San Diego metro): This is another region that saw a large increase in the median purchase price, soaring 23 percent over 2012, from $306,300 to $376,000. Purchase loan volume increased by 7 percentage points year over year to 54% of total volume, and ARM volume more than doubled, going from 3% of loan volume to 8%. In turn, 30-year fixed loan volume dropped 3 percentage points from 2012 to 2013.

San Francisco Bay Area: Median home purchase prices in the Bay Area continued their steady rise, jumping 10 percent over 2012, from $450,000 to $496,000. Purchase loans went up 19 percentage points year over year to 50% of overall volume. With rising interest rates, buyers returned to ARMs in the region, with volume quadrupling in percentage points, from 3 percent to 12 percent. Investment property volume ticked down as a percentage decline by a slight one point, to 15% of overall volume.

Boston metro: Housing prices held steady in the region, with the median purchase price going up 3 percent, from $374,500 to $385,400. Purchase loans rose more dramatically, however, going up 22 percentage points over 2012 to 47% of overall volume. 30-year fixed loan volume shook off higher rates in the area, rising 8 percentage points year over year to 70% of overall volume. Investment property loan volume went up by 2 percentage points year over year, to 8% of total volume. 

DATA SOURCE: Guaranteed Rate Inc.

©Copyright Guaranteed Rate Inc., 2014

About Guaranteed Rate

Guaranteed Rate is one of the ten largest retail mortgage companies in the U.S. and is Revolutionizing Life's Biggest Purchase™ by offering industry-leading self-service tools and low rate, low fee mortgages through an easy-to-understand process and unparalleled customer service. Headquartered in Chicago with approximately 170 offices across the U.S. and licensed in all 50 states, Guaranteed Rate has helped hundreds of thousands of homeowners with more than $65 billion in home purchase loans and refinances since 2000. Guaranteed Rate was recently named the No. 1 mortgage company in America by Mortgage Executive Magazine and was recognized by Inc. magazine as the No. 4 private company job creator in the U.S. Visit www.guaranteedrate.com for more information.

Follow Guaranteed Rate:
Facebook
Twitter
LinkedIn
Google

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
More and more file-based and machine generated data is being created every day causing exponential data and content growth, and creating a management nightmare for IT managers. What data centers really need to cope with this growth is a purpose-built tiered archive appliance that enables users to establish a single storage target for all of their applications - an appliance that will intelligently place and move data to and between storage tiers based on user-defined policies. In her session a...
"SAP had made a big transition into the cloud as we believe it has significant value for our customers, drives innovation and is easy to consume. When you look at the SAP portfolio, SAP HANA is the underlying platform and it powers all of our platforms and all of our analytics," explained Thorsten Leiduck, VP ISVs & Digital Commerce at SAP, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
IBM has announced software that allows people to hide or anonymize their personal information on the Web, ensuring protection from identity theft and other misuse. Developed by researchers at IBM's laboratory in Zurich, Switzerland, the software – called Identity Mixer – will enable consumers to purchase goods and services on the Internet without disclosing personal information. As consumers hand over personal details in exchange for downloading music or subscribing to online newsletters, they...
SAP is delivering break-through innovation combined with fantastic user experience powered by the market-leading in-memory technology, SAP HANA. In his General Session at 15th Cloud Expo, Thorsten Leiduck, VP ISVs & Digital Commerce, SAP, discussed how SAP and partners provide cloud and hybrid cloud solutions as well as real-time Big Data offerings that help companies of all sizes and industries run better. SAP launched an application challenge to award the most innovative SAP HANA and SAP HANA...
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, ...
Over the last few years the healthcare ecosystem has revolved around innovations in Electronic Health Record (HER) based systems. This evolution has helped us achieve much desired interoperability. Now the focus is shifting to other equally important aspects - scalability and performance. While applying cloud computing environments to the EHR systems, a special consideration needs to be given to the cloud enablement of Veterans Health Information Systems and Technology Architecture (VistA), i.e....
"At Harbinger we do products as well as services. Our services are with helping companies move their products to the cloud operating systems. Some of the challenges we have seen as far as cloud adoption goes are in the cloud security space," noted Shrikant Pattathil, Executive Vice President at Harbinger Systems, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Things are being built upon cloud foundations to transform organizations. This CEO Power Panel at 15th Cloud Expo, moderated by Roger Strukhoff, Cloud Expo and @ThingsExpo conference chair, addressed the big issues involving these technologies and, more important, the results they will achieve. Rodney Rogers, chairman and CEO of Virtustream; Brendan O'Brien, co-founder of Aria Systems, Bart Copeland, president and CEO of ActiveState Software; Jim Cowie, chief scientist at Dyn; Dave Wagstaff, VP ...
"Application monitoring and intelligence can smooth the path in a DevOps environment. In a DevOps environment you see constant change. If you are trying to monitor things in a constantly changing environment, you're going to spend a lot of your job fixing your monitoring," explained Todd Rader, Solutions Architect at AppDynamics, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"Desktop as a Service is emerging as a very big trend. One of the big influencers of this – for Esri – is that we have a large user base that uses virtualization and they are looking at Desktop as a Service right now," explained John Meza, Product Engineer at Esri, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
What do a firewall and a fortress have in common? They are no longer strong enough to protect the valuables housed inside. Like the walls of an old fortress, the cracks in the firewall are allowing the bad guys to slip in - unannounced and unnoticed. By the time these thieves get in, the damage is already done and the network is already compromised. Intellectual property is easily slipped out the back door leaving no trace of forced entry. If we want to reign in on these cybercriminals, it's hig...
CA Technologies released a new study – “DevOps: The Worst-Kept Secret to Winning in the Application Economy” – that reveals that 82% of enterprises in Asia Pacific and Japan (APJ) already have or plan to adopt a DevOps strategy, a 12 point increase from last year’s figure of 70%. DevOps is a methodology which helps foster collaboration between the teams that create and test applications (Dev) with those that maintain them in production environments (Ops). Vanson Bourne conducted the survey with...
High-performing enterprise Software Quality Assurance (SQA) teams validate systems that are ready for use - getting most actively involved as components integrate and form complete systems. These teams catch and report on defects, making sure the customer gets the best software possible. SQA teams have leveraged automation and virtualization to execute more thorough testing in less time - bringing Dev and Ops together, ensuring production readiness. Does the emergence of DevOps mean the end of E...
Docker offers a new, lightweight approach to application portability. Applications are shipped using a common container format and managed with a high-level API. Their processes run within isolated namespaces that abstract the operating environment independently of the distribution, versions, network setup, and other details of this environment. This "containerization" has often been nicknamed "the new virtualization." But containers are more than lightweight virtual machines. Beyond their small...
Since 2008 and for the first time in history, more than half of humans live in urban areas, urging cities to become “smart.” Today, cities can leverage the wide availability of smartphones combined with new technologies such as Beacons or NFC to connect their urban furniture and environment to create citizen-first services that improve transportation, way-finding and information delivery. In her session at @ThingsExpo, Laetitia Gazel-Anthoine, CEO of Connecthings, will focus on successful use c...