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Rise in Cash Sales another TRID Fallout
Friday, February 26, 2016
The percentage of homes sales that were all cash transactions increased in November, bucking a long term trend. CoreLogic, in its monthly cash sales report said cash sales represented 36.4 percent of all home sales during the month, an increase of 2.5 percentage points from October. From January 2013 until last October the percentage of cash sales had declined an average of 2.7 points a month over a range of -1.4 to -5.1 points.
CoreLogic said the cash sales share typically increases in November which makes it important to look at comparisons on an annual basis. That November to November decrease was the lowest in nearly three years, down 0.7 percentage points from 37.1 percent. The November 2015 spike in the cash sales percentage was likely due, CoreLogic said, to the new mortgage disclosure rules (TRID) which went into effect for mortgage applications filed in October. Some transaction settlement dates in November were delayed due to the industries learning curve with the new procedures, lowering the overall number of sales involving mortgages.
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