Mortgage volume declined in Q2 from Q1 for the first time in a decade



According to Attom Data Solutions, for the first time since 2011, lending activity in the second quarter decreased compared to the first.

This is an exception to the typical pattern of descent. increases in the first quarter from the fourth For the first time since 2009. The Residential Mortgage Report showed 3.78 million home loans issued in the second quarter of 2021, down 2.9% from the revised 3.89 million, while growth of 29.3% annually from 2.92 million

Loans totaled $ 1.18 trillion, down 0.6% from $ 1.19 trillion in the first quarter and up 38.9% from $ 853.3 billion a year earlier. IN stable growth in house prices last year probably explains why the volume of dollar loans increased, although the number of loans decreased.

Refinancing activities accounted for 2.23 million loans, down 14.8% from 2.62 million and up 25.5% from 1.78 million. Likewise, $ 674.7 billion in dollar refinancing fell 15.4% from the first quarter and rose 25.7% from a year ago, but was higher. than some predictions expected

The growth in purchases partially offset the drop in refinancing at the expense of 1.32 million sources, an increase of 22.4% from 1.08 million in the first quarter and 52.4% from 866 782 in the second quarter of 2020. Collectively, they totaled $ 465.5 billion, up 30.9% from the previous quarter. 77% over last year. Although the total number of loans disbursed was not sufficient to generate a total quarterly profit in a row, the relative dynamics of purchases remained noticeable.

“We haven’t seen this pattern for several years,” said Todd Theta, chief product officer of Attom Data Solutions, in his report. tapping. 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. “

Meanwhile, for the first time since 2019, lines of credit secured by equity capital grew on a quarterly basis. A total of 225,240 HELOC units were allocated, up 17.6% from 191,464 in the first quarter, but 18.4% less than 275,892 a year earlier. This volume was $ 44.7 billion, an increase of 15.7% for the quarter and a decrease of 16.8% for the year.


Source link