Industry News

MBA: First-mortgage originations up 14%

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First-mortgage originations went up 14 percent in the second half of 2005, and, with short-term rates rising, mortgage buyers moved to fixed-rate mortgage products, according to a report released by the Mortgage Bankers Association Tuesday. According to the MBA's Year-end 2005 Mortgage Originations Survey, fixed-rate products accounted for 47 percent of loan originations in the second half of last year, up from 42 percent in the first half. "As short-term rates increased over the second half of 2005, homeowners moved away from adjustable rate loans into fixed-rate loans," said Doug Duncan, MBA's chief economist and senior vice president of research and business development, in a statement. "Fixed-rate loans are more attractive as short term interest rates rise to similar levels as long term rates. Not surprisingly, consumers respond to interest rate-driven changes in opportunities in the marketplace," Duncan said. According to the survey, reverse mortgage originations incre...