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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.

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