First quarter new mortgage originations increased 16% year-over-year following a trend expected to continue alongside falling loan delinquencies and price improvements, according to Experian.
Findings from a recent Experian trends analysis of new mortgages confirm the upward trend in origination volumes seen over the past eight quarters is consistent with a
The combination of increasing originations in 2012 with decreasing loan delinquency rates and an improving economy indicate it is realistic to expect “a strong remainder of the year,” said Linda Haran, director of product management and strategy for Experian Decision Analytics.
The analysis shows mortgage delinquency rates continued to improve in 2012 and during 2013, “reaching multiyear lows.” At the same time, Experian finds the slight increase in late-stage 90- to 180-day mortgage loan delinquencies during the quarter “may be the result of
Overall, Haran said, the housing market is now driven by continued upward trends in origination activity and “off to a solid start,” especially in some of the best performing markets now on rebound.
For example, the regional share of mortgage originations in dollars was higher in the Midwest starting early in 2013.
Data show the volume in the Midwest region marked a 27% rebound year-over-year to $101 billion, which for the first time in two years surpassed California where originations increased by 6% to $92 billion.
Nonetheless, “California continues to lead the way,” in overall housing market recovery indicators, including home prices.
Average home price in the state increased slightly from 2011 to $325,000 compared to $169,000 in the South Central region and $163,000 in the Midwest.
