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U.S. Home Loan Originations Drop to Four-Year Low

Home loan originations fell to a four-year low in the second quarter of 2018, according…

  • March 6, 2019

Home loan originations fell to a four-year low in the second quarter of 2018, according to a report from property database curator ATTOM Data Solutions.

The report shows that more than 1.5 million (1,527,433) loans secured by residential property (1 to 4 units) were originated in Q2 2018, down 16 percent from the previous quarter and down 27 percent from a year ago to the lowest level since Q1 2014, a more than four-year low.

  • 662,713 of the residential loans originated in Q2 2018 were purchase loans, down less than 1 percent from the previous quarter and down 28 percent from a year ago.
  • 591,868 of the residential loans originated in Q2 2018 were refinance loans, down 26 percent from the previous quarter and down 27 percent from a year ago.
  • 272,852 Home Equity Lines of Credit (HELOCs) were originated on residential properties in Q2 2018, down 22 percent from the previous quarter and down 23 percent from a year ago

The loan origination report is derived from publicly recorded mortgages and deeds of trust collected by ATTOM Data Solutions in more than 1,700 counties accounting for more than 87 percent of the U.S. population.

Counts and dollar volumes for the two most recent quarters are projected based on available data at the time of the report.

“Rising mortgage rates are cooling mortgage demand across the board, with overall originations down to their lowest level since 2014 — the last time we saw more than six consecutive months with average 30-year fixed mortgage rates above 4 percent,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “Meanwhile buyers are upping the ante when it comes to down payments, evidenced by the record-high median down payment for homes purchased in the quarter, and an increasing number of buyers are getting help from co-buyers.”

Only four of 173 metropolitan statistical areas analyzed in the report posted a year-over-year increase in loan originations, counter to the national trend: Hagerstown, Maryland (up 51 percent); Beaumont-Port Arthur, Texas (up 16 percent); Raleigh, North Carolina (up 13 percent); and Ocala, Florida (up 1 percent).

Find out more at www.attomdata.com.

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