The percentage of single-family homes and condos purchased with all cash or by institutional investors hit record lows in May. Nearly 25 percent of all home sales in May were all cash purchases, according to RealtyTrac’s U.S. Home & Foreclosure Sales Report. This figure represents the lowest level of all-cash closings since November 2009. A year ago, more than 30 percent of buyers closed with all cash.
Apartment sales volume, maturing loan refinances and the conversion of construction loans to permanent financing has propelled multifamily lending so far in 2015. Commercial mortgage-backed security (CMBS) originations have increased, with conduits issuing $5.4 billion of multifamily loans during the first five months of this year.
Both mortgage applications and refinance activity decreased about five percent last week, likely due to rising interest rates, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.