Lenders ‘Chasing’ Loans: Beige Book

Several Federal Reserve Banks reported a decrease in mortgage originations in their districts since August due to higher rates and reduced refinancings, according to the Fed’s Beige Book.

But the message from the 12 Federal Reserve Banks was mixed. And reports from the Philadelphia, Richmond and Dallas districts indicated mortgage originations continue to rise during September.

The Richmond district bank said a North Carolina lender viewed loan demand as stable although pricing, especially for jumbo loans, was very competitive. He commented that some lenders were willing to sacrifice a good bit of margin to get those loans. Another North Carolina banker described the lending environment as pretty brutal.

A Northern Virginia banker commented that lenders are chasing the good deals,” which is keeping spreads low.

The Federal Reserve Board released its latest assessment of economic activity in the 12 Federal Reserve Bank districts Wednesday.

The Beige Book notes that residential real estate activity continued to improve at a modest pace as home sales and inventories remained low.

Real estate brokers told the Atlanta Federal Reserve Bank that existing home sales continued to increase in Florida but slowed in other parts of the district.

By most accounts, inventory levels continued to decline on a year-over-year basis and home prices continued to rise. The outlook for sales remains slightly positive with half of brokers anticipating sales gains over the next several months, the Atlanta bank says.

Article source: http://www.nationalmortgagenews.com/dailybriefing/Lenders-Chasing-Loans-Beige-Book-1039432-1.html

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