PLANO, Texas — According to Rodney Anderson, the country's fourth highest producing originator of mortgage loans and the highest producing originator of FHA and VA loans, this month's new mortgage activity is already double December 2007′s numbers.
Seventy percent of December's new loan applications were for purchases of residential property.
"There's no question that as rates dropped in the latter part of 2008 more people took steps to capitalize on the cost savings that those lower rates would bring," Anderson said. "And while many see this as a refinance boom, it's important to note that a significant portion of those loans–roughly 7 out of 10–were going to individuals purchasing new homes."
Recommended For You
Anderson predicts that if interest rates continue to decline, the country will see an increase in purchases as well as refinance transactions. However, he cautions against any attempts to time the market.
"The proposal that is urging the US Treasury Department to initiate rates as low as 4.5 percent–that proposal is designed to impact purchase transactions, not refinances, and there's no guarantee that it will come to fruition," he said.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
