Non-QM Continues to Dominate
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Existing home sales slipped in
September, following a month in which sales were almost totally flat. The National Association of Realtors® (NAR)
said that closed transactions for existing single family homes, townhouses,
condos, and cooperative apartments was at a seasonally adjusted rate of 5.15
million in September. This was a 3.4
percent decline from both the July and August rate, both of which came in at 5.34
million units. The last month in which existing home sales posted a month-over-month
gain was in March. Sales are now down 4.1 percent year-over-year from the
September 2017 rate of 5.37 million.
The share of closed loans originated for home purchase
continues to inch higher. Ellie Mae, in
its September Origination Insight Report,
says that share jumped from 68 percent in August to 71 percent. The upward trend in purchasing was most
pronounced for FHA loans where the share rose 5 percentage points to 83 percent.
For Conventional loans the share moved to 69 percent from 66 percent while
there was only a 1-point increase in the VA share, to 73 percent.
The distribution of loans did shift slightly for the
first time in months. The VA and FHA shares of closed loans remained at 10 and
20 percent respectively but the Conventional shared dipped by 1 point to 65
percent. The share of adjustable rate
mortgages (ARMS) increased to 7.2 percent from 6.6 percent in August.