Mortgage volume surged to 21-year high in Q1 2021: Attom

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In an atypical first quarter, the total number of mortgages issued increased from the fourth quarter for the first time since 2009, according to Attom Data Solutions.

By refinancing borrowers with low interest rates ahead of expected increase, lenders provided 3.77 million home loans and hit their highest quarterly level since 2007. They accounted for $ 1.16 trillion in volume – the largest amount since at least 2000 – with refinancing of $ 775.5 billion a share, $ 342.5 billion in purchases and lines of credit for housing. $ 37.8 billion.

Refis jumped 11.6% in the quarter and 113.2% in the year to 2.55 million loans, the highest since Q3 2003. In the short term, the direction of purchases took a step back, amounting to about 1.04 million loans. It represents a 7.2% quarterly decline on a 41.7% rise. year after year. HELOC lending continues dealing with the consequences of the pandemicwith 187,029 such loans in Q1, which is 27% less than in Q4 2020, and 34.2% from Q1 2020. This is the smallest number of HELOCs since the first quarter of 2013.

“Homeowners lined up to refinance their ever-growing number of loans during the first quarter of 2021, resulting in a very unusual quarterly increase in overall lending activity for this time of year,” said Todd Theta, Chief Product Officer at Attom Data Solutions. in the Residential Mortgage Emergence Report: “The mortgage industry almost always slows down in the winter, but not this year because so many homeowners are jumping on ultra-low interest rates to cut their monthly payments.”

Among housing markets with a population of more than 1 million, Buffalo, NY saw the largest jump in refinancing activity, increasing 55% qoq. This was followed by growth of 37.2% in Las Vegas and 31.8% in Milwaukee. Pittsburgh went against the national refinancing trend and fell 23.1% in the quarter, offsetting 16.6% declines in Houston and 14.6% in St. Louis.

The largest quarterly growth in buying activity was observed in Orlando, Florida (29%), Miami (24.5%) and Baltimore (24%). Meanwhile, purchase lending at Buffalo fell 65.1% from the fourth quarter, followed by 56.2% in Atlanta and 34.4% in St. Louis.

The average down payment fell from $ 23,250 per quarter to $ 18,700 per year, but from $ 13,250 per year. The down payment percentage of the average home price followed the same pattern, increasing to 6.1% from 7.4% in the previous quarter and 5% a year earlier. This is the first time the down payment percentage has dropped in the last four quarters.

“Lenders have issued more home mortgages than in any first quarter since 2006, and lenders have demanded lower down payments on these loans,” Theta told National Mortgage News. “Both were signs that mortgage money was available at some of the best interest rates.”



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