New mortgages for purchasing homes are flying out the doors these days, with the borrowers getting those loans having some of the highest credit scores ever. Finally, credit is favoring a smaller segment of borrowers, the result is that loan performance is the best in history right now.
In recent reports, purchase mortgage originations in the second quarter of this year were up 15 percent from a year ago, according to Black Knight Financial Services. In June, which is considered the height of the spring buying season, saw the largest purchase loan volume since 2007, due to a high volume of sales according to the report.
What’s happening now is this: cash-heavy investors move out, mortgage-dependent borrowers are moving in. Cash sales made up about 30 percent of total home sales in July, the latest reading, down from 34 percent in July 2014. It is at the lowest level in nine years.