Increase in Home Purchase Mortgages and Decrease in Refinance in 2013

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The mortgage originations volume declined by 11% in 2013 compared to 2012, according to the official report for 2013 released by the Federal Financial Institutions Examinations Council in September 2014. The home purchase loan originations rose by 13% while the mortgage refinance originations declined by 23%.

The volume of mortgage originations in 2013 was 8.7 million. It declined from 9.8 million during 2012. There were 1.5 million fewer refinance mortgages in 2013 compared to 2012.

The number of mortgage loans for owner occupied homes reached a level of 2.68 million. These loans marked a growth for a second year in a row after reaching their lowest level for the past two decades (2.07 million) in 2011. Even though there is a sustained growth in the mortgages for owner occupied homes, they are still below the levels reached from 1993 to 2007.

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The growth in home purchase loans was disproportionate among the different groups of mortgage borrowers. There was a 50% increase in the loans issued to high-income borrowers from 2011 to 2013 while the number of mortgages issued to low-income and moderate-income borrowers rose by just 7% during this period. The home purchase loans to Asian borrowers rose by 42% between 2011 and 2013. The home loans issued to African-American borrowers marked an increase of 12% during the period.

The share of home purchase loans issued to low-income and moderate-income borrowers shrunk to 28% in 2013 compared to 33% in 2012. The decrease of 5% was the largest since the start of the decline in 2009 which was preceded by 3 years of consecutive growth.

The rate of home purchase mortgage loan denial was 14.5% in 2013. It did not experience significant shift from its level if 2012. The denial rate among African-American applicants was 25.5% and 20.5% among Hispanic applicants. The denial rate among non-Hispanic white applicants was 12.2%.



Christian Calvin mortgage Christian is a contributing writer for He is a graduate from the University of Tennessee with a degree in Communications and a concentration in Broadcasting. Christian has served as vice-president for a privately-held company for more than 20 years. Additionally, he has also applied his writing and business knowledge to various websites with a focus on business and sports news . . . both of which are passions. Christian enjoys playing golf and spending time with his family and friends.


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