Is mortgage origination data indicating housing headwinds ahead?

title insurance, New York,New York City,Long Island,Michael HaltmanAbout a month ago an article appeared in the Hallmark Abstract Service blog asking the question of whether the housing market rally had run its post-crash course and was in fact topping out (Is the housing market heading up or rolling over? (Guest Post))?

If a topping out in the market is in fact the case, it would not be good news for anyone who participates in the real estate industry.

The fact-of-the-matter is however that, given the scope of this sector’s impact on the overall US economy, the participants are basically all of us whether homeowners, investors or renters!

The premise of the argument by our guest author in the prior article was centered around the fact that the bulk of real estate buying around the country was not being done by families looking to settle down in a home for their future lives. The historically traditional buyers who put 25% down and finance the rest in a mortgage.

Instead, the bulk of the buying was being done by investors who were not financing their purchases but instead were paying cash.

The problem with dependence on that type of buyer is of course that at some point the rise in prices make their decision to invest more difficult until prices rise to a point where the decision will be no. It will be no due to the absence of sufficient return on their investment dollars to justify the risk that they will be taking.

In an article appearing today at HousingWire, a report from Black Knight Financial Services is cited which offers data that finds mortgage originations have dropped to their lowest point in 14-years. The reason? A decline in activity by cash buyers.

The take-away? There are two basic ones.

The first is that the housing market may indeed be facing some headwinds in the near future, while the second is that by subscribing to the Hallmark Abstract Service blog (click on the Follow-tab in the lower right-hand section of the page) you will consistently be kept abreast of the important issues in real estate!


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Attorney’s and mortgage professional who have any questions about HAS or the way in which we conduct our business please contact HAS President Michael Haltman by phone at 516.741.4723 or by email at

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Content created by Michael Haltman

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