Market Conditions

Increase in Minority Income Spurs More Homeownership

Median income increased from 2015 to 2016 to the highest point it’s ever been. Income levels rose 3.2 percent to $59,039 from 2015 to 2016. These numbers are setting records; its the highest point ever reached, and it’s the second year in a row it’s been rising. The statisics below can be found here.

Asian homes continue holding the highest median income at $81,431, Non-hispanic white households were next with $47,675, which is also up 2%. 

The two households with the lowest median income didn’t come without loss. They experienced the most growth from 2015 to 2016. Black households climbed to $39,490 which is up 5.7 percent. And the second highest growth sector was the Hispanic households, up 4.3 percent to $47,675

Forgetting the rising home prices, this increase in income explains why Hispanic home ownership is rising as well.  

Up from 2015, 2016 saw a whopping 45.6 percent increase in homeownership among Hispanics. This  demographic was the only one that saw an increase, all others saw a loss of homeownership. 

Experts, and all of America is hopeful and rooting for Hispanics and other minorities continue the trend increasing homeownership.


Cash Buying

Freddie Mac’s latest report showed housing charted lower than they originally thought for Q2, and this is making buyers pursue another route to buy a home. 

In the report the tight supply of homes was highlighted, and how cash deals are more attractive to the sellers. Back in the day, people would basically buy homes with a loan they received. This is still a popular route, but it’s getting increasingly difficult. Now sellers are preferring cash deals, which puts a lot of buyers out of the market. 

Some people aren’t fond of the idea of throwing their cash into real estate because it is illiquid and has extremely high transaction costs. But today, if a buyer walks up to a house they like with cash, they gain the upper hand quickly over their competitors. This way, the seller doesn’t have to worry about the buyer getting a mortgage, or if the appraisal will come in lower than they expected. Having one more cash sale means one less mortgage origination. 

Since Freddie Mac’s prime mortgage interest rates expected to stay under 4% for the rest of 2017, home sales should hit 6.2 million units for the year, which is a whopping 3% jump from 2016. Freddie would say the number is still stifled due to inventory constraints.  

For the year, home price appreciation is expected to be 6.3% due to high demand and incredibly low  supply. 

For the month of June, cash sales were 18% of all home sales. The historical average is 10%, but it was still less than the all-time high of 35%. 

We will have to wait and see what today’s market that sucks down cash has on the mortgage market. If the cash sales can hover around 20% for a while, that would equate to $172 billion less in mortgage originations than if the cash were steady at it’s historical norm.


Prices Rise Again in 2nd Quarter

Median homes prices are rising in 87% of markets, and it's setting records along the way. In the second quarter prices edged the record high from 2016, coming off a 6.2% jump even while the weak supply has been inflating prices higher. 

The national median price for a single family home from the second quarter was $255,600, which is up from $240,700 in Q2 of 2016. 23 metros saw double digits increases, and the price for a single family home rose a whopping 87% in markets across the nation.

According to the National Association of Realtors, The economy gained 2.2 million jobs over the past year, and that has really increased the buying trend; even more so with the tight supply. Homes in the market were being sold frequently, lasting only a month. Home prices rose due to the supply not being able to keep pace with the demand. 

If the supply could meet the demand, many more people could enter the markets and enjoy the wealth building opportunities of homeownership. They’re currently being priced out. 

Even though sales are still 1.6% higher than this time last year, the total existing home sales dropped 0.9% to a seasonally adjusted annual rate of 5.57 million for the second quarter. On the flip side, by 2nd quarter end in 2017, 1.96 million homes were on the market which is a 7.1% drop from 2016. The average supply was 4.2 months. 

The people are believing it’s a good time to buy because mortgage rates are down, their incomes are rising, but the supply of homes is still abhorrently low and it’ll pose problems for the second part of the year. 

The five most expensive housing markets in the second quarter were San Jose, San Francisco, Aneheim-Santa Ana, Honolulu, and San Diego. It’s no coincidence 4/5 are in California, and the 5th is even further west. You know what they say, “West Coast Best Coast”. Maybe not in affordability, but most other things yes. 


Fannie Mae and Freddie Mac

So far in 2017 Fannie Mae has lowered the benchmark interest rate for standard mortgage modifications, and now is about to do it again. 

Usually, Fannie and Freddie increase or decrease the benchmark interest rate together, but apparently not this time.

Last Wednesday they said they would be lowering the benchmark rate from 4.125% to 4%, but Freddie didn't make a statement about it. Housing wire has reached out to the government run entity, but they have yet to give a response. 

This January Freddie increased the benchmark from 3.87%to 4.25% which is the highest point it had been since July of 2015. But just this May, they both cut it back down to 4.125% together. 

Yet again Fannie is cutting the benchmark back down again. This number is influenced by prevailing market rates, so the GSE's change the benchmark intermittently to stay current w the market rates. 

January was the second treatment of an increase, since Fannie and Freddie did decreased the benchmark throughout 2016, even below 4%.

The GSE's dipped the standard mortgage modification benchmark interest rate to its lowest level ever at 3.5% in August 2016, and shortly after they started rising again. It made another spike in December, and even the month after in January.

We don't know if Freddie will be doing the same but for right now it's benchmark is 4.125%.


Market Update for June

Redfin’s newest data has stated home prices in June increased 7.1% to a median sale price of $298,000. Redfin began tracking home prices back in 2010, and last month and June was the highest jump they’ve ever recorded. Another interesting stat is that 26.6% of homes listed sold above their list price, which is another record for Redfin. 

June saw home prices rise by 1.9% since last June, all while the total amount of inventory fell 10.7%. The average home that went to market in June only lasted an average of 36 days. This also happens to be another record for Redfin, as these homes sold one day earlier than the previous month. Some homes around the country in the hotter markets only lasted a week. 

Some of these markets are unseen before this point. Records are being set almost every month, prices are soaring, demand is still booming all while supply isn’t making any gains. In order to survive in these markets, one must know what they’re doing and do whatever it takes to buy that house fast. The better offers are the ones that usually win in these instances.


Mortgage Rate Update 7/10/17

Last week the planet saw interest rates rise, and the United States followed. They saw a slight jump in the 10-year Treasury. It rose 10 basis points while interest rates across the globe rose quickly. 

The 30-year fixed rate mortgage rose to 3.96% for the week ending July 6th, 2017. That’s quite a jump considering the average of the prior week was 3.88%, which is 8 basis points. This time last year the rate was 3.41%, so yes that is still a remarkable jump. 

The 15-year fixed rate mortgage also increased to 3.22% for the week. The week prior it held at a stead 3.17%, and up from last year’s 2.74%. 

The five-year Treasury Indexed hybrid adjustable rate mortgage rose to 3.21%. Last week it was at 3.17%, and the year before it was 2.68%. 


Shortage of Labor for Developers

Roughly 66% of contractors are having a difficult time finding quality labor that finishes jobs on time. There is simply not enough skilled craftsmen to go around. More than a third of contractors are having to decline job offers, all while increasing their prices. USG Corp. and the U.S. Chamber of Commerce took a survey and found that 3/4 of the contractors they surveyed are lacking skilled labor so bad, they are just asking their employees to work harder. Pretty much they are asking them to work harder in order to cope with the lack of skill available. 

The survey that took place was part of the development of new economic indicator launched in early June.  It was designed to measure trends like backlogs, revenue projections, access to financing, and labor issues.  

Of the contractors surveyed, 2/3 of them predicted more labor help would come in the next several months, but 61% of them said skilled labor like concrete masons, electrical, plumbing, etc. were terribly hard to find or book. There just isn’t enough qualified talent. 

Industry leaders are a bit worried for the future. The Trump administration has promised it will spend $1 trillion on new infrastructure, and industry workers can barely keep up with the work they have now. To spend that much on new work could surely make the situation even more dire. 

A big part of the shortage of labor is due to the amount of construction projects in the near future. From January tip April of this year construction spending amounted to $359.5 billion, which is 5.8% more than the same time of 2016. 

It didn’t help that thousands of skilled laborers left the market when the economic crisis hit. On top of that, even before the crisis, the labor market was aging. It was essentially like a large chunk of the labor market retired around the financial crisis. 

What will happen for the future? We will just have to wait and see.


Home Prices Slow for April

There is new data for the month of April regarding home sales. The home-price growth slowed for the first time in months, and if the trend continues it may mean markets are beginning to lose steam.

The S&P, according to CoreLogic Case-Shiller Indices, rose 5.5% on the year, which ends in April. It was also down from a revised 5.6% year-over-year increase which was reported in March.

Back in September home prices were setting records, and the pace of their gross continue to rise at a healthy rate.

Across the 10 city indexed, there were chains of 4.9% throughout the year, but was still down 5.2% since March. Meanwhile, the 20 city index Rose 5.7% but still down 5.9% from the prior month. 

Economists from the wall street journal were expecting a rise of 6% in April, which is quite a bit different from what they had planned. The high demand in the market has pushed the accelerated gains to new heights, all of which is fueled by rising wages and young people looking to buy homes. The one problem economists fear is that Price growth that continues to outpace income growth will not sustain itself.

They are worried if home price gains gently slow, or if they crash and take the Eckman bony down with them. They are not expecting a disastrous crash.

The price of homes are still growing quickly but are slowing nonetheless, and growing faster than incomes. The good news is that home price growth is still less than half of what it was during the pre-crisis in 2005, at 14%. 

On the other hand there are several markets that are beginning to see double-digit (or near double-digit) growth. The markets are Seattle, Portland, Dallas, and Denver. 

Of the top 20 cities, seven reported greater year over year price increases for April.

Month over month, US index saw a chain of 0.9% in April which was not seasonally adjusted. The tin city rose 0.8%, and the 20 city index saw a decrease of 0.9% from March to April....

Foreclosings Dwindle

Less and less foreclosure signs have been sprouting up in the past several years, which has been excellent for the industry.

A foreclosure filing includes default notices, and auctions and bank repossessions. These have dropped 19% across the country from the first quarter of 2016. This is roughly 235,000 homes! 

A report by Attom Data Solutions, a real-estate data firm, claims these are the lowest level of foreclosures since the third quarter of 2006! 

If we view this on a local level, more than 100 markets fail sufficiently below pre-recession foreclosure levels, which is up from 78 markets last year. These cities that still have a higher number of foreclosures include Philadelphia, New York, and Boston.

In March 2016 foreclosure rates were up 24% compared to March 2017. However, March rates are up 6% from February. 

The state of new jersey had the highest rate of foreclosures followed by Maryland in Nevada.

Since foreclosure rates are dropping, this indicates a strengthening housing market. It may also impact the affordability crisis that is popping up throughout the country. And because people are finding it harder to afford houses, they are choosing to rent rather than buy. 

Regardless, we like seeing the rate of foreclosures shrink!


Closing Times Are Speeding Up!

National average closing time for February was down to 46 days after falling from 51 in January. This is according to Ellie Mae Origination Insight Report.

The average home purchase loan took approximately 45 days to close in February which is an improvement of three days from January. A refinance loan took an average of 47 days to close in February, which is an improvement by 6 days. 

63% of the market share are conventional loans for February, while January held a 66% marketshare. The FHA bumped up it's market share by two percentage points and the VA loans rose by one point to 10%.

The FICO score's for loans decreased in February to 720 after falling from 722. Considering a year ago in August and September, FICO scores are currently 11 points lower. On the other side, FICO scores are still one point higher than January 2016.

The good news is that 70% of the closed purchase loans had a minimum score of 700.

February was a strong month for buyers, they held a 57% of the total close loans. 


2017 Rate Volatility Impacts Affordability

Well interest rates rose again. Its always a little disheartening to the prospective home buyers when the rates rise because it’s a little less square footage they can afford. The upside is you will have a little more flexibility than you know. 

We are going to have a look back at some past rates since November, see how it effected affordability, and what to do to get the best deal you possibly can. 

2017 rate recap & projections

Since the election rates have risen .75%. This is due to the belief that Trump’s administration will stimulate the economy again, through lower taxes, deregulation, etc. 

The rates are leveling off in an almost unpredictable way. Since November the rates have been dropping and rising again, every single day. 

It all comes down to inflation. If there are threats of inflation, rates rise. As the administration operates day-to-day, investors bet inflation to relax, and other days they bet for it tossing upward. 

Holistically, rates are off from post election highs, up .5% from this last election. 

The volatility will continue as investors and the Fed attempt to predict where the rates will go. Here’s how it impacts your potential purchase. 

How the rates impact affordability 

For example, a $350,000 home that has a 20% downpayment, followed by a rate spike of .5% takes away $17,000  from your affordability. This seems like a huge number, and it is, but it’s not damning you to a lesser home. 

How much home you can afford is based on a debt-to-income ratio, which looks at all your debts (car payment, credit card debt, etc.) and is divided by your monthly income. Typically, if you spend 43% of your income on bills, lenders won’t lend to you. 

That $350,000 house you want, your DTI says you can only afford $333,000...

Home Builders Slow As Developers Start Fewer Apartment

A report by commerce deep apartment stated that the adjusted rate for new house is 1.25 million, which is a Decline 2.6% in January. The United States saw a drop in apartment constructions, which lead to fewer homes being built last month.  December of 2016 new house construction rose 1.9% while new apartment construction dropped nearly 8%.
However, in the past year new home construction rose 10.5%. This is due to an increase in demand in homes. Despite rising interest rates, the market is still standing strong.

The frustrating obstacle for buyers today is the lack of inventory. The December stock of available homes reached its lowest point since 1999, in turn, prices have elevated so much that buyers have to relentlessly bid against one another.

Homebuilders are seeing the demand firsthand, but can't erect homes fast enough to alleviate a little of the shortage.
On the other hand, future building permits rose 4.6% last month!

A significant rise in permits is good news for these frustrated buyers. Permits turn into starts, and starts develop into new homes for sale. Economists are expecting a significant amount of starts for mid-2017.

A combination of shortage of homes, rising prices, and increasing mortgage rates all aided to hinder the sales of existing homes in December. These homes fell 2.8% from the prior month.

Enough of all the doom and gloom, the good news is that we have officially recovered from the big recession almost a decade ago. Last year builders began work of the most homes since 2007 right before the recession happened.

The Northeast and the south saw the most starts in the month of January. The Northeast had nearly record gains of starts at 55.4%, and the South sought 20% gains.

We will see how higher mortgage rates will affect the market, even though they are still historically low numbers. Lately, the rate has been about 4.15%, which is still higher than...

Flipping Homes Like It's 2006

Once again, the practice that led to the mass buying of homes before the great collapse is happening like before.
People who buy homes to renovate them and sell them quickly are known as home flippers. A flip is most widely known as a home that is sold twice within a calendar year. They accounted for nearly 6% of the US home sales in 2016; but before the crash in 2006 they made up 7.3% of us homes sold.
The practice of flipping homes has been making a comeback in the cities that were hit hardest by the foreclosures.
Flipping homes has become popular again since the prices of homes have risen. On the other hand we don't exactly know if it is a good thing considering what happened before.
 In the past some local housing market investors were able to bid up the price in almost a frenzy. When this happened flippers overran the market competing with buyers who also needed a home to live in, limiting the availability of homes.
Flippers also provide a positive service to the industry by investing in homes that desperately need improvement. They are turning homes quickly and making the necessary repairs without riding the price appreciation.


3 Interest Rate Hikes for 2017?

The Federal Reserve made the last interest rate hike for 2016 in December. At the end of the year they hinted that there would be more to come in the coming year, but experts disagree with their hint.

The executive vice president of capital markets of New American Funding, Jason Obradovich, says they won’t be raising rates like they are hoping to.

He says they have tried raising rates for the past few years and only did it successfully once per year, not to mention in the 11th hour (December) of the year. That is the definition of waiting until the very last second to pull the trigger.

One thing is for sure, the interest rate rose for nine consecutive weeks once Donald Trump was elected President. This was some of the most active movement the market has seen in a substantial while considering they hit two-year highs.

However, on the other side the past two weeks have seen rates drop. The hype of the election is what made the rates rise. Every economist knows constant rate hikes would be too much for the economy to withstand over time. The Fed tried hinting this would be the new trend, but the market wasn’t fooled.

Obradovich also thinks the American people could see a tax cut, which has the potential to raise rates and inflation. He doesn’t think there’s any room vertical room left for the rates to go, as the market simply cannot support high rates.

There’s always somebody to argue for the opposite side, and that would be CEO of OwnAmerican Greg Rand. Rand believes the economy is as strong as ever and we have nothing to fear. His argument is that Janet Yellen, the Federal Reserve Chair, is responsible for seeing the dollar reach a 14-year high, saying there is plenty to be confident about in the US economy.

Now is a time to play it conservatively and assume the economy isn’t quite ready to withstand numerous rate hikes this year. It’s better to be absolutely, 100% sure, than risk it...

Home Prices Grow Over 7% in November

Corelogic shows home prices aren’t slowing down based on November’s market growth by 7.1% in 2016 against November of 2015. This is a continuation from the prior month which showed a 6.7% growth, which even factored distressed homes.

 This kind of growth hasn’t been seen since May of 2014. Corelogic believes home prices are rising because of the low inventory, and mostly because Donald Trump winning the election.

Per month, home prices have risen over 1.1% since October 2015 to October 2016. The historically low mortgage rates triggered demand, and the for-sale homes inventory being low led to the rise in home prices.

Prices in 27 states have seen their average home price above the peak pre-crisis levels, and don’t show any sign of slowing down.

The peak of index home prices was in 2006, and right now we are just 4% below that magic number. It’s expected to far surpass that number by the end of 2017.

This New Year we are expecting prices to rise by 5%. This is on the assumption that inventory levels rise as needed, which will put the pressure on the market to raise prices.

Corelogic has come up with these numbers based on their market analysis.


Mortgage Rates at End of 2016

Ever since the election mortgage rates have risen .5%, and show no sign of slowing down. This should be a warning to anyone who was planning, or thinking about refinancing in the near future, and a louder siren to anyone planning on buying a home. Rates will doubtfully drop again, so it’s time to reassess your budget. Let’s have a look at what happened and what the next move is.

Why are rates rising?

The election of Donald Trump has made market participants believe that his policies of tax cuts, infrastructure spending, and trade tariffs, will be inflationary.

The rates are directly tied to bonds; and bonds pay the rate of returns to investors annually. If inflation is correlated to policy, the bond investor’s rate of return will be worth a less in the future. When inflation becomes a fear investors sell bonds, and rates rise when prices drop during a major selloff.

Since Trump was elected, bonds have been sold in a panic almost which has led to the biggest losses in almost 30 years.

Mortgage rates were basically at the mid level of 3% all year long, and have risen to a low 4% since Trump was elected. It’s possible to level off, but it won’t likely drop to the rates we saw earlier this year.

Where to go from here

One of the world’s most notable bond investors, Jeffrey Gundlach, believes we have “seen about 80 percent of a post election rate spike”, which is just ahead of the Federal Reserve meeting on December 14. 

He is saying it’s possible for rates to rise a bit more and the final determination will be what the Fed decides.  They make the policy based on two criteria.

The first thing is they control the bank-to-bank lending rate which is the standard rate for mortgage rates in the economy. This time last year they jacked it up by 0.25% when they’ve...

2017 - What's Going to Happen?

Most of this year has been a struggle for keeping a sufficient amount of home inventory. This factor alone has been the biggest hurdle to achieve a fully healthy housing market. According to the newly released forecast from the National Association of Realtors, 2017 will be better.

Chief economist from NAR, Lawrence Yun, and Dennis Lockhart, the CEO of the Federal Reserve Bank of Atlanta discussed the 2017 economic forecast at the residential housing and economic forecast session at the 2016 Conference and Expo.

Yun in short said, the demand and sales were weakened over the summer when the low supply hindered buyer’s choices. This in turn made the price grow pushing some consumers out of the market.

Yun predicts that 2017 will see the skimpy supply grow and the affordability issues dissolve; but warns it will take time and won’t happen in a short period of time. He said he believes housing starts can jump 5.3% to 1.22 million next year.

The growing demand and the shortfall to make up for recent years is still needing another 1.5 million homes. It’s estimated that new single-family home sales are likely to reach 570,000 homes by the end of 2016, and rise to 620,000 for 2017.

Who will buy these new homes? Millennials! Both Yun and Lockhart are hopeful that the housing demand will include leading-edge millennial households who will jump into the market at a growing rate.

The NAR surveyed current renters and recent buyers, and found there’s a strong will to own homes of their own by younger generations. The market should see a big lift in demand from these new buyers over the next several years. The only thing that could slow this down is not enough inventory. So it is crucial home builders build, build, build, at entry level prices.

Yun also predicted that 2017 existing-home sales should grow around 2% to around 5.46 million, and even 4% by 2018 to $5.68 million.

Median existing-home prices will likely rise by 4% this...

Growth of Home Prices and Household Incomes

S&P Corelogic Case-Shiller reported today that home prices rose again in July, and at an even faster rate than June. The price increase monthly record from July 2006 was almost broken, falling short by only 0.6%.

Something else to consider is the increase in incomes. As home prices continue to rise, so do incomes; which happened to rise faster than the home prices. Perhaps if things continue this way and avoid any market disasters, the home affordability problem could be solved.

We are seeing home prices continue growing steadily, and the rise in incomes is one of the several factors influencing it. The U.S. Census Bureau reported that for the first time in eight years, household incomes have seen substantial increases in household income by 5.2%.

Considering the income growth is keeping up with the growth of homes, sometimes exceeding it is a strong sign for the future. On the other side, the incomes are so far behind; it’s still going to take a while for homes to become affordable.

Some economists believe wage inflation needs to be hiked up a bit for the market to completely mend.

Brent Nyitray of iServe Residential Lending said earlier today, “The real estate indices are beginning to show a slowdown in home prices appreciation. Until we start seeing wage inflation, real estate prices will be stretched versus incomes.

The Vice President of Quicken Loans Bill Banfield, is of the same opinion.

“Despite recent data pointing to slower sales, home prices continue to rise faster than incomes in many areas. Low inventory will continue to be a challenge for buyers looking for the right home and can cause those bidding to be more aggressive on the house they finally want to purchase.”

Some west coast cities like Seattle, Denver, and Portland saw the highest gains over the past six months. Their numbers were Seattle 11.2% Denver 9.4% and Portland with the highest at 12.4%

Again, if this path can continue without falling...

Home Sales Fall in August

Another report from the Associated Press has said August home sales were less than desirable. A shortage of inventory is hurting sales, and pushing prices higher.

The real estate industry has been one of the countries strong points despite a weak economy overall. Sales have been steadily recovering since the recession, and buyers credit is finally back to a healthy status. The main weakness in the real estate market is a lack of inventory. Not enough homes are being put on the market, which is a reflection of the aftermath of the bubble almost ten years ago.

The sale of existing homes dropped by 0.9% in August, to a seasonal adjusted yearly rate of 5.33 million; which is the second straight month in decline. The drop this moth happened after a time of respectable gains lifting home sales up by 3%. The historically low mortgage rates have teamed-up with an improved job market giving buying power to potential home buyers.

Significantly fewer sellers are entering the market despite eager buyers. Housing inventory has fallen 10.1% from this time last year, leaving the market with 2.04 million homes.

A shortage of homes has posed as a gridlock for buyers, and those who are willing to sell their homes may not be able to find another to live in right away. The demand is greater than the supply which is pushing up prices significantly. A lot of buyers are stuck in their rentals as they fight through a bidding war. If deals don’t go in their favor they are stuck where they are for now.

August’s median home sale price was $240,200, a price increase of 5.1% over the past year. This signals that American’s need to save more for a down payment, ultimately hurting home ownership rates.

The Northeast is the only region that saw record sales gains, while the Midwest, South, and West saw sales fall short.

Renting prices are supposedly becoming more manageable, but it’s still outrageous to rent just about anywhere. Zillow has reported that rents rose...

Home Sale Numbers for August

The Mortgage Bankers Association held a survey this month pertaining to last month’s home sales; and they found quite good news. August home sales gushed out of the market with a whopping 601,000 sales. This is actually the highest volume of transactions since the survey began back in 2012. The applications were even up, despite July being quite poor.

The purchase applications increased 5% for the month, and a very strong 14% increase since August of 2015. The only thing the survey didn’t take into consideration is the adjustment for seasonal trends.

The MBA survey calculated the new home sales estimates by using the mortgage applications from the BAS. They also consider the market coverage and other factors when estimating these numbers. They also track builder applications from mortgage subsidiaries of home builders across the nation. Given this information, and some that is not so easily explained, MBA can estimate new home sales volume nationally, and even down to the metro level.

It’s believed that builders are responding to the call of the market; building homes to catch up with the demand. With jobs getting harder to come by among Middle America, builders are giving people jobs and homes to live in. There are plenty of reasons for builders to shy away from that call, but the market has made a steady recovery since 2008, and confidence is soaring right now.

A little statistics to show what’s happening: Conventional loans made up almost 68% of loan applications, FHA loans were 18%, RHS/USDA loans were barely over half a percentage point, and VA loans were 13%.

Another fun fact – the average size of a loan dropped by $620 to settle at $325,224 for the month of August.