Mortgage bankers funded $357 billion of one- to four-family loans in the second quarter, a 7% increase from 1Q, but a 39% decline from the same period a year ago.
According to exclusive survey figures compiled by National Mortgage News and the Quarterly Data Report, every single lender among the top 15, without exception, experienced a decline in production.
PHH Mortgage, Mt. Laurel, N.J., fared the best with originations slipping just 8% while CitiMortgage, O'Fallon, Mo., had the worst performance with loan production down a whopping 61%.
During the first-half, roughly $680 billion of home mortgages were funded. Forecasters expect single-family originations of $1.2 trillion to $1.4 trillion this year.
However, for now, mortgage bankers are feasting on a strong refi market. Over the past several weeks refi applications have risen to 80% of new production, a sign that consumers — fearful of getting laid off — just will not commit to buying a home or venture into the "move up" market.
"I think the purchase market will continue to be flat through 2010 and into next year," said Michael Fratantoni, vice president of research and economics for the Mortgage Bankers Association.
MBA is forecasting loan production of $400 billion for the third quarter, but sees that number falling dramatically to $280 billion in 4Q.
As might be expected, the origination market was bolstered by well publicized federal tax credits for home buyers, but the benefit expired this spring. Some contracts entered into before the expiration date will result in loan closings that occur in the current quarter. (For the full story, see the Monday paper edition of NMN.)
