MBA Sees Shift Toward FRM Loans.

Washington -- A shift towards fixed-rate loans occurred in both the overall and subprime mortgage origination markets, according to the results of a pair of surveys conducted by the Mortgage Bankers Association of America.

According to the Mid-Year 2007 Mortgage Originations Survey, between the second half of 2006 and the first half of 2007, origination volume increased 3.2% based on dollars but decreased 6.9% based on loan count. The study said the probable cause was an increase in the dollar volume of refinance loans. Refis made up 55% of the first-half 2007 production, compared with 45% for home purchases.

The survey found that for first mortgages, fixed-rate loans - including interest-only loans - accounted for 53.4% in dollar volume or 67.4% by loan count of originations in the first six months of 2007, compared with 46.2% in dollar volume or 60.5% by loan count in the last half of 2006.

First-time homebuyer market share remained unchanged between the second half of 2006 and the first half of 2007, at 26.9%. The average loan amount was $202,265, which was less than the average loan amount of $233,433 for repeat homebuyers.

In a finding that seems surprising given the buzz over the reverse mortgage product, the dollar volume of these loans decreased 92.4% between the last six months of 2006 and the first six months of ...