Survey: Fixed-Rate Loan % Rose in 2nd Half

Fixed-rate products were the most popular products in the second half of 2005, according to the Mortgage Bankers Association Mortgage Originations Survey.The survey was released at a media briefing during the MBA National Secondary Market Conference in Chicago. These loans made up 57% of originations during the second half of the year, up from 52% for the first half. Fixed rate interest only loans increased its share of the IO market from 7% in the first half up to 13% in the second half of the year. First time homebuyers were one-third of the market in the second half of last year, with an average loan amount of $183,000. The average loan amount for repeat buyers was $227,000. Among the hot products were reverse mortgages. Although still a small part of the overall market, total reverse mortgage dollar volume increased by 45%. The dollar volume of Federal Housing Administration Home Equity Conversion Mortgages was up 48%, while the other products were up by 22%. MBA chief economist Doug Duncan called the growth in reverse mortgages "quite striking." MBA chairman Regina Lowrie said that, from a lender's perspective, she is seeing consumer fears about reverse mortgages being allayed because of increased knowledge. Moreover, there is an aging baby boomer population that will add to possible borrowers, she said.