Arvest reports 97% jump in mortgage activity

Arvest Mortgage Company reported May 8 originations of more than $548 million in new mortgage loans for both purchases and refinancing during the first quarter of 2012, up 97% over the 2011 period.

In contrast, the Mortgage Bankers Association projected first quarter 2012 new mortgage originations to increase nationally by 5% over first quarter 2011.

“Typically, first quarter is the slowest quarter for home buying and refinancing. However, low interest rates have enabled many homeowners to refinance their mortgages at near record low rates and encouraged others to purchase homes at a time of year when, typically, they have not,” Todd White, Arvest Mortgage senior vice president, said in a statement. “For our loan originations to have doubled, the overall real estate market has to be improved for both buyers and sellers. Our loan officers are certainly reporting a significant increase in activity with significantly more families buying homes and many more sellers being successful in finding buyers.”

Arvest also experienced a higher mix of purchase loans (35%) to refinances (65%) compared to national projections where refinances are projected to be 76% of total applications. U.S. lenders are projected to originate $318 billion in residential mortgages in the first quarter of 2012, led by $242 billion in refinanced loans, according to estimates published March 16 by the Mortgage Bankers Association.

“We are encouraged by the amount of purchase loans we saw last quarter. Approximately 35 percent of the 3,782 mortgages we’ve made were purchase loans, so while refinancing was still strong, more and more people are buying homes,” White concluded.