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VOL. 129 | NO. 9 | Tuesday, January 14, 2014

Mortgage Market Grows 3 Percent in 2013

By Andy Meek

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The mortgage market in Shelby County ended 2013 with a modest improvement over 2012, with signs pointing to more advances in 2014.

(Daily News File)

Banks and mortgage lenders made 8,298 purchase mortgages in Shelby County during 2013, a 3 percent improvement from the 8,027 mortgages during 2012, according to the latest data from real estate information company Chandler Reports, www.chandlerreports.com.

Data for this report did not include refinances.

Mortgages averaged $169,064 during the year, up 9.6 percent from the average of $154,286 in 2012. The total volume jumped 13 percent to a little more than $1.4 billion during the year from about $1.24 billion in 2012.

“Rates are a full point higher than they were about eight months ago and about a quarter of a point higher than three months ago,” said Jeff Hudson, West Tennessee division president for Renasant Bank. “That points to a slowdown in refinance activity. Demand for purchase money mortgages remains steady, but we are in a two- to three-month period (now) where mortgage activity is traditionally slower. We anticipate demand to be stronger in the spring months – which, again, is fairly traditional.”

December Mortgages Slip Slightly

December’s mortgage activity slipped slightly compared to the same month in 2012.

Total mortgage volume sank to $93.9 million in December 2013 from a little more than $94 million a year ago. 

There were 587 mortgages made in December 2013, a 2 percent decrease from the 599 in December 2012. The average mortgage amount was $160,095, though, up from $157,047 in December 2012.

Those totals also all represented drops from November 2013, which saw 591 mortgages in Shelby County with an average mortgage of $173,282 and total mortgage volume of $102.4 million.

The top lenders in December 2013 were Community Mortgage Corp. with 44 mortgages, Magna Bank with 35 mortgages, Iberiabank with 28 mortgages and BancorpSouth with 24 mortgages.

Chandler Reports is a division of The Daily News Publishing Co. Inc.

His bank saw robust mortgage demand over the past 12 months. Renasant grew its mortgage volume to a little more than $26 million in 2013 from about $13.4 million in 2012, according to the Chandler Reports numbers.

The overall uptick in the county’s mortgage activity follows the same pattern that home sales saw over the past year.

According to Chandler Reports, Shelby County ended 2013 at a five-year high for home sales and average prices, with the county netting almost 16,000 homes sold during 2013, up 6 percent from nearly 15,000 homes sold in 2012.

Real estate agents said those numbers reflect a steady rebound for the industry following a multi-year slump in the aftermath of the recession.

Regarding mortgage activity for the largest banks based in Memphis, First Tennessee Bank was down 31 percent. The bank recorded 58 mortgages during 2013 compared with 89 mortgages in 2012.

Independent Bank was up 26 percent, with 43 mortgages in 2013 compared with 34 in 2012. Metropolitan Bank grew its number of mortgages from 39 to 99 over the same period, while Magna Bank’s slipped a little, from 615 to 582.

Like Hudson, Steve Weaver, regional bank president for the Memphis area for First State Bank, said his bank has seen an uptick in purchase mortgage activity and that its future “looks bright in this sector.”

Fourth-Quarter Mortgages Nearly Flat

The number of mortgages in the fourth quarter of 2013 was about where it was during the same period in 2012, while at the same time, total volume during the quarter rose.

There were 1,920 mortgages during the fourth quarter of 2013, almost flat compared with the 1,924 mortgages during the same period in 2012.

Between October and December, total mortgage volume rose 7 percent to almost $320 million compared with almost $298 million in the year-ago period. And the average mortgage amount in the fourth quarter of 2013 was $166,486, up 7.6 percent from the $154,666 during the same period of 2012.

Top lenders during the quarter included Community Mortgage Corp., which made 167 mortgages with a total volume of almost $24 million. Magna Bank made 112 mortgages with a total volume of almost $22 million, while Wells Fargo made 88 mortgages with a total volume of a little more than $19 million.

Iberiabank made 101 mortgages during the quarter with a total volume of $17.3 million, and BancorpSouth made 75 mortgages during the quarter with a total volume of $15.7 million.

Chandler Reports is a division of The Daily News Publishing Co. Inc.

First State grew its mortgage volume to nearly $5 million in 2013 from about $2.2 million in 2012, according to Chandler Reports.

“First State has seen a rise in mortgage activity for home purchases, both existing and new construction, compared to refinancing activity,” Weaver said. “We expect that to settle into a 75 percent purchase and 25 percent refinance mix in the market. After an early fourth-quarter rise in 30-year fixed rates, they have flattened out in the mid 4 percent range, with 15-year rates in the 3.5 percent to 3.75 percent range.”

Lenders with the highest mortgage volume in 2013 included Community Mortgage Corp. at the top, with a volume of $120.7 million, down from almost $136 million in 2012.

Next came Magna Bank with its 2013 volume of a little more than $109 million, down from a little more than $115 million in 2012. Wells Fargo grew its volume from 2012 to 2013 (from almost $75 million to nearly $82 million), and Patriot Bank’s volume was up during the same period (from almost $75 million to nearly $80 million).

BancorpSouth grew its volume to nearly $77 million in 2013 from almost $60 million in 2012.

Other gainers during 2013 included Triumph Bank, which grew its mortgage volume to almost $10 million from a little more than $6 million in 2012. And Paragon National Bank grew its mortgage volume to a little more than $19 million in 2013 from almost $12 million in 2012.

Chandler Reports is a division of The Daily News Publishing Co. Inc.

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RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 0 0 5,073
MORTGAGES 0 0 6,709
FORECLOSURE NOTICES 0 0 1,556
BUILDING PERMITS 0 0 11,979
BANKRUPTCIES 0 0 5,300
BUSINESS LICENSES 0 0 2,061
UTILITY CONNECTIONS 0 0 7,058
MARRIAGE LICENSES 0 0 1,458

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