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Online Mortgage Applications Nearly Double in the First Quarter of 2012
MEQUON, WI, Apr 09, 2012 (MARKETWIRE via COMTEX) --
Mortgage applications nearly doubled in the first quarter of 2012
compared with the same period last year, according to a recent report
from MortgageMarvel.com, an online mortgage-shopping website that
delivers real-time mortgage offers from multiple lenders. "This is an
indication that consumer confidence is increasing and people are
taking advantage of low home prices and interest rates," said Rick
Allen, Chief Operating Officer of Mortgage Marvel.
Refinancing continues to be prevalent. The study reflected that loans
to refinance an existing mortgage accounted for 54 percent in the
first quarter of 2012 versus 61 percent of loans in the fourth
quarter of 2011. The volume of applications to purchase homes in the
first quarter was up 40 percent over the same period last year, which
indicates that the housing market is picking up.
Applicant credit scores averaged 733 in the first quarter of 2012
compared with 716 in the same period in 2011, indicating that
personal finances may be improving as well. The average median
household income nationwide of mortgage applicants rose from $79,400
to $87,450.
Mortgage Marvel data is compiled from loan applications submitted to
lenders using Mortgagebot's online lending platform. Mortgagebot,
which owns and operates Mortgage Marvel, licenses its technology to
over 1,100 lenders nationwide to facilitate mortgage applications
through every delivery channel -- consumer-direct via the Internet,
in the branch or call center, or through professional loan officers.
In 2011, more than 500,000 loan applications were submitted through
Mortgagebot's online lending platform. As a result, Mortgagebot has a
rich database to use for analyzing interest rate and buying trends in
the housing market.
Nationally, average interest rates for a 30-year, fixed rate,
conforming mortgage climbed slightly during the first quarter of 2012
yet still remained at historically low levels. "On January 1, 2012,
the average rate for this type of loan through our lender clients was
4.02 percent," Allen said. "Rates reached a low of 3.92 percent on
February 2 and a high of 4.18 percent on March 20. On March 30, the
last business day of the quarter, the average rate stood at 4.06
percent."
Housing prices in most major cities have continued to fall, according
to the Case-Shiller Home Price Index, but analysts are expecting
prices to rise modestly during 2012. On the positive side, the
Case-Shiller data indicated price increases in Miami, Phoenix and
Washington, D.C. This is a ray of hope for Florida and Arizona, which
were especially hard hit by the housing market's difficulties.
The consumer-estimated, average home price for applications in the
Mortgage Marvel study was virtually unchanged, coming in at $267,204
in the first quarter of 2012 and $266,507 in the first quarter of
2011. The average loan amount fell slightly -- from $188,528 to
$185,223 -- indicating a small increase in average down payment
amounts.
"Things are improving, but, even though rates are at record lows, the
total mortgage market in 2011 was less than a third of what it was in
2003 -- roughly $1.2 trillion versus $3.8 trillion," Allen said.
"This shows just how much the housing and mortgage markets have been
impacted by economic conditions."
About Mortgage Marvel
Mortgage Marvel is an online mortgage-shopping website that delivers
real-time quotes from multiple lenders -- in complete privacy. It is
a service of Mortgagebot LLC, a wholly owned subsidiary of Davis +
Henderson Corporation, that has led the industry since 1997 by
providing the unique, award-winning PowerSite(R) family of integrated
point-of-sale solutions for taking mortgage applications in every
mortgage business channel: consumer-direct via the Internet, in the
branch or call center; or through professional loan officers. You can
follow MortgageMarvel.com at facebook.com/mortgagemarvel and on
Twitter at @mortgagemarvel.
For further information, contact
Ana Tackett
Email Contact
Tony Felice
Email Contact
602-359-0626
SOURCE: Mortgage Marvel
http://www2.marketwire.com/mw/emailprcntct?id=73770212697FB881
http://www2.marketwire.com/mw/emailprcntct?id=037C7B5C6AD58F9B
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