Warren Group: Refinancing Pushes New England Mortgage Activity

Record-breaking low mortgage rates and rising home sales are leading to increase mortgage activity in New England, according to ""The Warren Group's"":http://www.thewarrengroup.com/ Mortgage MarketShare Module.

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According to the data, Massachusetts, Connecticut, and Rhode Island have all seen strong mortgage activity so far in 2012, with Massachusetts showing the strongest numbers. Activity in the state is up more than 28 percent, rising to 99,097 in the first four months of the year-an increase from 76,930 during the same period in 2011.

Purchase mortgages increased almost 13 percent year-over-year to 13,376, while non-purchase (refinance) mortgages slid up 32 percent to 85,721. March had the most activitiy, with 22,877 purchase and non-purchase mortgages filed statewide.

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Mortgage activity in Connecticut increased more than 16 percent in the first four months of 2012, with 43,179 mortgages being originated (an increase from 37,074 during the same period last year). Purchase mortgages rose 11.5 percent, while refinance mortgages increased 17 percent.

Rhode Island's mortgage activity increased as well, but only in the refinance sector. Non-purchase mortgages rose to 11,191 over 8,562 in 2011. However, purchase mortgages actually fell 3.8 percent from last year (1,783 compared to 2011's 1,854). Total mortgage originations through April 2012 were 12,974, up from 10,416 in 2011.

""The housing market has rebounded recently with single-family home sales volume increasing in nine of the last 10 months,"" said Timothy M. Warren Jr., CEO of The Warren Group. ""More home sales translate to more purchase mortgages. But the real story is the increased volume of refinance mortgages. Low interest rates and a revamped federal program called Home Affordable Refinance Program are making lower monthly payments possible for many more homeowners.""

More than 86 percent of total mortgages so far this year were refinances (compared to 84.5 percent during the same period in 2011). The refinance share of applications nationally is about 78 percent, according to the Mortgage Bankers Association.