The Mecklenburg Times January 11, 2022

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Your inside source for real estate, development and construction information serving the counties of Mecklenburg, Union & Iredell VOLUME 99 NUMBER 2 ■ MECKTIMES.COM

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Mortgage lending declines at unusually fast pace across U.S. During third quarter of 2021 Frampton Construction Company, LLC, completed the construction of three industrial facilities at Eastgate 540 industrial park in Knightdale, N.C. Page 3

Zillow’s Hot Housing Takes for 2022 Page 2

Harkins Vice President Ben Nichols Promoted to President Page 4

ENNICO: Year-End Tax Planning for 2021 (Part 1 of 2) Page 5

NOVAK: Gaining Respect So People Listen Page 6

US stocks turn mixed ahead of economic reports and earnings Page 7

ATTOM has released its third-quarter 2021 U.S. Residential Property Mortgage Origination Report, which shows that 3.59 million mortgages secured by residential property (1 to 4 units) were originated in the third quarter of 2021 in the United States. That figure was up 3 percent from the third quarter of 2020, but down 8 percent from the second quarter of 2021 – the largest quarterly dip in over a year. The quarterly decline also was the second in a row and pointed to two unusual patterns developing in the lending industry. It marked the first time in more than two years that total lending decreased in two consecutive quarters. More notably, it was the first time in any year since at least 2000 that lending activity declined in both the second and third quarters, which usually are peak buying seasons. That pattern emerged amid declines in both refinance and purchase lending which more than made up for a bump up in home-equity lines of credit.

Overall, with average interest rates remaining below 3 percent for 30-year home loans, lenders issued $1.15 trillion worth of mortgages in the third quarter of 2021. That was up annually by 11 percent, but down quarterly by 6 percent. The quarterly decrease in the dollar volume of loans was the first since the early part of 2020. On the refinance side, 1.99 million home loans were rolled over into new mortgages during the third quarter of 2021, a figure that was down 13 percent from the second quarter and down 3 percent from a year earlier. The total number of refinance mortgages has declined for the second straight quarter, while the quarterly decrease was the largest in three years. The dollar volume of refinance loans was down 10 percent from the second quarter of 2021, to $624.1 billion, although still up annually by 1 percent. Refinance mortgages remained a majority of all residential lending activity during the third quarter of 2021. But that portion

dipped to 55 percent, down from 59 percent in both the second quarter of 2021 and the third quarter of 2020. The number of purchase loans also declined in the third quarter of 2021 as lenders issued 1.36 million mortgages to buyers. That was down 2 percent quarterly, although still up annually by 17 percent. The dollar value of loans taken out to buy property dipped to $482.6 billion, down 1 percent from the second quarter of this year but still up 30 percent from the third quarter of 2020. Home-equity lending, meanwhile, rose for the second straight quarter, which last happened in mid-2019. The tally of home-equity lines of credit, while down annually by 9 percent, rose 2 percent between the second and third quarters of 2021, to about 238,500. The continued dip in total loan activity during the third quarter represented a

PLEASE SEE MORTGAGE ON PAGE 6

“The overflow stack of work that was hitting lenders for several years shrank again in the third quarter across the U.S. amid a few emerging trends” Todd Teta, chiefproduct officer at ATTOM

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