Arvest reaches $1 billion mortgage mark within 6 months
by June 17, 2009 5:15 pm 72 views
Bentonville-based Arvest Bank announced Wednesday (June 17) it had reached $1 billion in mortgage loans as of June 15, about six months before it usually hits that level.
“Based on this activity, Arvest has surpassed their entire 2008 total within the first six months of 2009,” the company noted it its statement.
The company would not provide a geographic breakdown on the mortgage activity, but did say the Fort Smith market has seen a doubling similar to that seen in all the bank’s markets.
The company said mortgage refinancing was 75% of the total. However, within the past three months, the company said mortgage refinance has dropped to 60% of the business.
“Record low interest rates and more affordable housing contributed to the substantial increase in our mortgage numbers, but we’re beginning to see a shift in the type of loan applications we’re receiving, from refinances to new mortgage loans. We are also encouraged that the first-time homebuyer tax credit is stimulating that interest,” said Todd White, Arvest Mortgage senior vice president.
The federal government now provides a $8,000 first-time home buyer tax credit that can be used as a down payment or direct cash to the home buyers.
Interest rates as low as 4.5% were common in the first quarter and helped spur a nationwide increase in mortgage activity. But the U.S. bond markets and inflation concerns have caused those rates in recent weeks to push back above 5% and above 5.5% for 30-year mortgages.
Steven Plaisance, executive vice president at Arvest Mortgage, said he is “cautiously optimistic” rates will remain at levels conducive to continued strong mortgage activity.
Arvest Bank — founded by Jim Walton, son of Wal-Mart Stores Inc. founder Sam Walton — operates more than 200 bank branches in Arkansas, Oklahoma, Missouri and Kansas through a network of 16 locally managed banks.