In November, 62.6% of loans reaching their balloon date paid off. The percentage of loans paying off in September and October was 68.2% and 60.7%, respectively. Prior to September, the payoff level had surpassed 60% only twice since the beginning of 2009. Prior to 2008, Trepp adds, the monthly payoff percentages were typically well north of 70%.
Since the beginning of 2009, however, there have been only six months in which more than half of the balance of loans reaching their balloon date actually paid off.
Trepp adds that by loan count, as opposed to balance, 67.7% of loans paid off in November. On this basis, the payoff percentage was the highest level since January 2009. The 12-month rolling average is by loan count now 55.5%, Trepp says.