Monthly Mortgage Market Share Archives

June, 2020 Mortgage Market Share Report

July 22. 2020

I’m currently taking time away from the business and will return in early August. I’ll resume my commentary next month.

Be Smart. Be Safe

~ John Bethell

May 2020, Mortgage Market Share Report

June 17, 2020

Mortgage transactions for the first five months of 2020 are up a whopping 62% over 2019 totals (1860 vs 1149 for mortgages securing loans between $75K & $510K). The refinancing increase is partially offset by the decline in purchase originations that showed up considerably in May.

I included a simple chart at the end of this month’s report that shows recorded deeds through May, comparing this year and last. The decline in May deed recordings, which reflects market activity in the prior four to six weeks is stark.

In our own book of business, new purchases picked up starting in early May but are still well below normal. Since Indiana adopted Stage 4 of the Governor’s COVID-19 reopening plan, we’ve seen another modest increase in new purchases.

The Monroe County Courthouse partially reopened with limited access earlier this week. We still have a few transactions that can not be completed without accessing their records. We’re confident that towards the end of June, those orders will be completed.

Thank you for your continued patience!

~ John Bethell

April, 2020 Mortgage Market Share Report

May 20, 2020

Included with this April’s mortgage numbers are two charts incorporating sales disclosure data for the first quarter of 2020. This data was unavailable to me until recently. These charts show that through the first three months of 2020, Monroe County transfers were about the same as in 2019.

A quick check of sales disclosure data from April 1st through May 15th tells a much different story. The effects of COVID-19 on purchase transactions is now evident. In April 2020, sales disclosures were down 20% from April 2019; 198 from 246. The first half of May shows an even more pronounced decline of 41%; 79 from 133. By May 1st, most of the transactions in process prior to the governor’s stay at home order were completed. Transactions closing now were started after the order was issued.

Nevertheless, the pace of new purchase contracts seems to be starting a recovery. Our own book of business since May 1st reflects that recovery but overall is still less than we’d expect at this time of year. Most of these new transactions are scheduled to close after June 1st.

Fortunately for all of us, the new refinance business is still robust, although less than the levels experienced four to six weeks ago.

Since mid-March, courthouse closures are preventing us from finishing only about 2% of the orders we’ve received. As courthouses start to reopen, we’ll be able to slowly address this situation. We appreciate your continued patience.

Our team is performing well and getting better every day with our COVID-19 protocols and processes. During April our closing team provided seller side closing statements 2 or more days prior to closing in 88% of our transactions while averaging 4.4 days prior to closing. Our title team continues to adjust to working from home. Each of the last few weeks they’ve improved and Monroe County commitments issued last week averaged a 4.5 day turnaround time. In April we helped 526 people buy, sell or refinance their homes. A remarkable number under the circumstances!

We are grateful for your support always, but especially so the last eight weeks.

Be Smart. Be Safe.

~ John Bethell

February, 2020, Mortgage Market Share Report

March 24, 2019

My, how quickly things can change.

As recently as two weeks ago, 2020 was shaping up to be a tremendous year. Now . . . the next few months will be challenging on many levels, both personal and professional, for most of us.

Anecdotally, the purchase market is showing signs of a significant slowdown. I’ll be watching our order counts and new MLS data from the Realtors® for real numbers. The recent volatility of interest rates is adversely affecting refinance volume as well.

I am optimistic that both markets are only being delayed, not permanently changed.

If you are not receiving our frequent updates about how COVID-19 is affecting our closing protocols, please email customerservice@johnbtitle.com.

For now, we remain open and ready to help you and your clients.

Be smart. Be safe. We’re all in this together.

~ John Bethell

January, 2020 Mortgage Market Share Report

February 18, 2020

Through the first five weeks of 2020 our percentage of refinance orders relative to our overall order count is continuing at the same level as it was the second half of last year. Refinances are about 30% of all of our orders. Steady mortgage interest rates over the same seven plus months clearly is the reason why.

If your client asked what rates will do later this year, how do you answer that question? Here’s two links to check out.

http://www.mortgagenewsdaily.com/consumer_rates/

The above link to Mortgage News Daily lists a variety of articles that can be used to support just about any answer that you want to give. How convenient!

If you want to take a contrarian, but bullish position, check out this link from Housing Wire.

UBS: Fed may cut rate three times in 2020

The one thing we do know for sure is that right now there’s an opportunity. We can all get a good start in 2020 and make this our best year ever, so far!

In January we helped 283 people buy, sell or refinance their properties. Our title team produced new commitments in an average of 4.9 days. Our closing team provided seller side closing statements two or more days prior to closing in 96% of our transactions.

After January, recorded purchase transactions (deeds) are over 20% stronger than last year. Of course, small sample size caveats are in order. I’ll be watching this comparison closely in the coming weeks!

~ John Bethell