Monday, September 23, 2013

About 2.5 Times As Many Mortgage Refinancings As Purchase Mortgages: Almost Half of Purchase Mortgages Were With Very Low Or No Down Payment

From The Wall Street Journal, "Eight Takeaways on Mortgages After the Housing Bust" by Nick Timiraos:

Purchase, Improvement And Refinancing Mortgages Chart
Source; The Wall Street Journal
1. Lending is up, but there’s a big asterisk. While the number of mortgage loans made in 2012 increased by 38%, most of that came from refinancing. The number of loans made to people actually buying homes increased by 13% to levels that were still shy of every year between 2000 and 2009.
2. Borrowers are having trouble making big down payments. Loans made by the two federal agencies with the easiest terms today—the Federal Housing Administration, which requires down payments of just 3.5%, and the Department of Veterans Affairs, which makes loans to veterans and doesn’t require any money down—accounted for almost 45% of owner-occupant home-purchase loans.

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