Mortgage Market Share Report June 2010

It?s like D?j? Vu all over again!

~ Yogi Berra

I certainly didn?t see this coming. A couple of months ago I wrote here that I was optimistic that we?d get a modest increase in refinances to help soften the effect of the expiration of the homebuyer tax credits. Well it turns out that new orders for refinances are at levels not seen since the glory days of refinancing in 2002-2003. Not that I?m complaining.

For almost a year now, the mortgage market has been slogging along at ten year lows. Check out the charts for mortgage originations in 2004. We?re probably headed towards those numbers in the next few months. And unlike prior periods of ?interest rates will never be this low again?, our clients tell us that most refinances are being locked at application. Few are floating the rate hoping for that extra one eighth of a percent.

The purchase market is a different story. The three quarter streak of positive comparisons year over year will in all likelihood come to an end. (sale transaction chart, page 14) I?m fairly certain that the homebuyer tax credits for the most part only accelerated transactions into the second quarter (primary residence sales chart, page 15) and did little to bring new buyers into the market.

The tsunami of refinancing is happening all over the country. In the past these extraordinary periods usually last from six to twelve weeks. So I expect the remainder of the year to be filled with activity. After the applications slow, closing the deals will consume our time. Hopefully enough people will save enough money to help the consumer side of the national economy.

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Finally, excuse a bit of shameless self promotion. Our in-house property records data base, from which most of the attached data is gleaned, allows us to complete the title insurance commitment for most refinances without having to spend much time at the court house. Even though we?re extremely busy our dedicated title group is meeting a very respectable three to four days turnaround time. Only when a title issue that needs more research is discovered do things take a bit longer. Our expanded closing facilities at the World Headquarters and our crack team of closing professionals will effectively deal with the inevitable rescheduling and closing delays that are now unfortunately too much a part of getting deals done.

We take pride in providing a consistent level of excellent service in all types of market environments. Thank you for your continued support. We truly appreciate it!

~John Bethell