According to the latest data released by RealtyTrac, home loan originations in the United States have gone down considerably compared to the same period last year. According to RealtyTrac’s Q1 2016 U.S. Residential Property Loan Origination Report, home loan originations in America has gone down by as much as 8%.
However, closer analysis of the report brings out a different story. According to the report, purchase loans and HELOC loans originations have seen a growth, but the overall rate has been pulled down by the dismal performance by refinance loans. Purchase Loans have increased by 3% and Home Equity Line of Credit or HELOC loans have increased at 10% from a year ago. However, on the other hand, Refinance loans have decreased by as much as 20% over the same period.
Home purchase loans have increased by a considerable margin in cities like Tucson, Nashville, Baltimore, Louisville and others. Whereas, the cities which have seen a tremendous rise in the number of HELOC loans include San Antonio, Portland, Tampa, Dallas and the likes.
Industry analysts were expecting such results. Over the past many years, purchase loans in the United States have grown at a slow but steady pace and refinance loans, despite having lower interest rates, have seen depreciation in the past as well. Experts attribute this change to the lower interest rates in purchase loans. This has attracted borrowers towards purchase loans and away from refinance loans.
However, government backed loans like FHA Loans has seen a remarkable rise in the period. Markets have also seen a rise in the number of VA loans. The number of military vets applying for VA Home Loans has gone up and so has the number of approved loans. VA Loans edges out all the other loans as it gives a number of advantages to the borrower. So, if you are a military veteran then you should seriously consider getting a VA Loan and fulfill your dream of buying your own home.
However, closer analysis of the report brings out a different story. According to the report, purchase loans and HELOC loans originations have seen a growth, but the overall rate has been pulled down by the dismal performance by refinance loans. Purchase Loans have increased by 3% and Home Equity Line of Credit or HELOC loans have increased at 10% from a year ago. However, on the other hand, Refinance loans have decreased by as much as 20% over the same period.
Home purchase loans have increased by a considerable margin in cities like Tucson, Nashville, Baltimore, Louisville and others. Whereas, the cities which have seen a tremendous rise in the number of HELOC loans include San Antonio, Portland, Tampa, Dallas and the likes.
Industry analysts were expecting such results. Over the past many years, purchase loans in the United States have grown at a slow but steady pace and refinance loans, despite having lower interest rates, have seen depreciation in the past as well. Experts attribute this change to the lower interest rates in purchase loans. This has attracted borrowers towards purchase loans and away from refinance loans.
However, government backed loans like FHA Loans has seen a remarkable rise in the period. Markets have also seen a rise in the number of VA loans. The number of military vets applying for VA Home Loans has gone up and so has the number of approved loans. VA Loans edges out all the other loans as it gives a number of advantages to the borrower. So, if you are a military veteran then you should seriously consider getting a VA Loan and fulfill your dream of buying your own home.
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