The latest data from Attom Data Solutions shows that mortgage lenders issued more loans for purchases in the second quarter of the year, but lost ground in refinancing.
Mortgage lenders across the country increased their purchase loan activity in the second quarter of the year, although refinancing declined significantly.
The industry issued more than 1.3 million new single family loans in the second quarter, up 22 percent from the amount issued in the first three months of the year, according to Attom Data Solutions’ quarterly report. mortgage issue report…
Purchase loans also grew throughout the year. Purchase loans totaled more than $ 465 billion from April to June, up 31 percent from the previous quarter.
These industry-wide results are on their heels income statements from various lenders it showed credit boomeven though institutions were hit by a 15 percent quarterly downturn in the often more lucrative refinancing business.
That divergence – a boom in purchase loans coupled with a downturn in refinancing – is a relatively unusual sight, said Todd Theta, chief product officer at Attom, in a report.
“We haven’t seen such a pattern in years,” Theta said in a statement. “The significant increase in the number of households willing to make a purchase is undoubtedly largely due to this. And we may be getting to a point where so many homeowners have refinanced that the need for these deals is disappearing. ”
Overall, the number of loans issued declined by 3 percent in the second quarter, including purchase loans, refinanced loans and lines of credit secured by equity.
Home equity loans rose 18 percent in the second quarter to 225,000. For the first time in nearly two years, this category grew from one quarter to the next, according to a report by Attom.
These changes in the mortgage industry came against the backdrop of strong demand for homes during the pandemic, as well as against a backdrop of interest rates that occasionally fluctuated. dropped to historic lows, and stay close to them…
However, despite these low interest rates, borrowers are more likely to invest more in their next home.
The average down payment on residential property in the second quarter was $ 25,000, well above the average down payment of $ 18,500 in the previous quarter. This was 7.4% of the average selling price of a home bought with a mortgage. Both metrics hit their highest levels since at least 2005, Attom said.
The news company said that the refinancing boom in previous months and its apparent decline in the second quarter of 2021 will be one of those stories to watch over time.
With mortgage rates return slowlyarguably the largest group of homeowners planning to refinance has already done so, Attom said in a statement.
“We will see if this is a short-term spike or a real trend in the next few months, which looks to be a really key period for the credit industry,” Theta said in a statement.