News Feed Item

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.

Follow Guaranteed Rate:

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of So...
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
Virgil consists of an open-source encryption library, which implements Cryptographic Message Syntax (CMS) and Elliptic Curve Integrated Encryption Scheme (ECIES) (including RSA schema), a Key Management API, and a cloud-based Key Management Service (Virgil Keys). The Virgil Keys Service consists of a public key service and a private key escrow service. 

SYS-CON Events announced today that eCube Systems, the leading provider of modern development tools and best practices for Continuous Integration on OpenVMS, will exhibit at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. eCube Systems offers a family of middleware products and development tools that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...
Amazon has gradually rolled out parts of its IoT offerings, but these are just the tip of the iceberg. In addition to optimizing their backend AWS offerings, Amazon is laying the ground work to be a major force in IoT - especially in the connected home and office. In his session at @ThingsExpo, Chris Kocher, founder and managing director of Grey Heron, explained how Amazon is extending its reach to become a major force in IoT by building on its dominant cloud IoT platform, its Dash Button strat...
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessi...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
DevOps is speeding towards the IT world like a freight train and the hype around it is deafening. There is no reason to be afraid of this change as it is the natural reaction to the agile movement that revolutionized development just a few years ago. By definition, DevOps is the natural alignment of IT performance to business profitability. The relevance of this has yet to be quantified but it has been suggested that the route to the CEO’s chair will come from the IT leaders that successfully ma...
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walk you through how Oct...
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.