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VOL. 132 | NO. 182 | Wednesday, September 13, 2017

August Mortgage Volume Up 16 Percent

By Andy Meek

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The vice president of Independent Bank’s mortgage division is expecting to tackle about five mortgage pre-qualifications this week as well as a couple of contracts.

“Activity is good,” said an enthused Sam Goff, who adds that Independent Bank has recently hired a couple more loan officers with the expectation that September will be another busy month coming off August, which Goff said was one of Independent’s “best months ever.”

That’s at a time when Shelby County’s mortgage market saw a 16 percent gain in purchase mortgage volume in August compared to August 2016. According to data from real estate information company Chandler Reports, www.chandlerreports.com, mortgage volume countywide grew from about $188.8 million in August 2016 to $219.4 million last month.

Top August lenders by purchase mortgage volume

Community Mortgage Corp.

August 2016: $14.5M

August 2017: $19.9M


August 2016: $16.9M

August 2017: $12.8M


August 2016: $8.8M

August 2017: $11.7M

Source: Chandler Reports, www.chandlerreports.com

Over that same period, lenders made 21 percent more mortgages – 1,210 mortgages last month, compared to 1,001 in August 2016. As has been the trend for a while now, though, the size of those mortgages is getting smaller, on average.

Over the two August periods, the average mortgage amount slipped a bit, from $188,643 to $181,394.

Still, talk to professionals in the industry and times appear to be good. Pinnacle Financial Partners CFO Harold Carpenter told analysts on the bank’s most recent earnings call that Pinnacle’s residential mortgage group had wrapped another banner quarter in terms of production.

The unit saw about $262 million in loan sales during the quarter, and “we feel very positive regarding our mortgage pipeline as we head into the third quarter.”

It’s a continuation of the market upswing. From July to August, for example, things were on a similarly upward trajectory, albeit not as sharp.

July saw purchase volume climb 4 percent over July 2016. July also saw lenders completing more mortgages, though – again – the average size of those mortgage was smaller than those made in July 2016.

Be that as it may, Goff says area sellers are still able to get prices they’re happy with.

“It’s my same refrain,” he said. “A good home in a good neighborhood that’s been well maintained, taken care of, maybe some updates – it’s going to go above asking price.

“I think High Point Terrace is still hot. I think there’s some homes around the medical district starting to heat up. Midtown, of course, is always good. The major part of the conversation has to be about the suburbs, Germantown and Collierville. With them having their own school systems.”

It’s been that way, more or less, for most of 2017. Volume year-to-date through the end of August hit almost $1.4 billion, up 10 percent from the nearly $1.3 billion in volume for the same period of 2016, according to the Chandler figures.

The average mortgage amount, here again, is down year-to-date. Lenders have spent most of the year completing more individual mortgages, but for either the same or smaller amounts.

Lenders made 7,714 mortgages year-to-date through the end of August, up from 6,959 mortgages over the same period in 2016.

The average mortgage amount year-to-date, however, hit $180,785 at the end of August, a small slip from the $181,386 recorded at the same point in 2016.

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PROPERTY SALES 83 170 7,919
MORTGAGES 93 201 9,400
BUILDING PERMITS 113 243 16,850
BANKRUPTCIES 50 105 5,511

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