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

For the first time since 2011, credit activity declined in the second quarter from the first, according to Attom Data Solutions.

This exception to the typical pattern followed originations increasing in the first quarter from the fourth for the first time since 2009. The Residential Property Mortgage Origination Report showed 3.78 million home loans produced in the second quarter of 2021, 2.9% less quarterly from the 3.89 million reviewed while jumping 29.3% annually from 2.92 million.

Loan volume totaled $ 1.18 trillion, 0.6% down from $ 1.19 trillion in the first quarter and an increase of 38.9% from $ 853.3 billion a year earlier. the steady rise in house prices in the last year probably explains why the volume of dollars increased even though the number of loans decreased.

Refinancing activity accounted for 2.23 million placements, a 14.8% quarterly decline from 2.62 million and an annual increase of 25.5% from 1.78 million. Similarly, the $ 674.7 billion in refi dollar volume fell 15.4% from the first quarter and was up 25.7% from the prior year, but was stronger. than some forecasts anticipated.

The growth in purchases partially offset the decline in refinancing with 1.32 million originations, 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. Combined by $ 465.5 billion, representing jumps of 30.9% quarter to quarter and 77% year-on-year. While the total number of loans produced was not enough to generate an overall profit in a consecutive quarter, the relative strength in purchases was still notable.

“We haven’t seen that pattern for several years,” Todd Teta, Attom Data Solutions’ chief product officer, said in the report. “We may be getting to the point where so many homeowners have refinanced that the need for those deals is by tapping. We’ll see if this is a momentary problem or a real trend over the next few months, which seems to be a really key period for the credit industry “.

Meanwhile, home equity lines of credit grew quarterly for the first time since 2019. HELOC origination totaled 225,240, 17.6% more than the 191,464 in the first quarter, but 18.4% less than the 275,892 in the year previous. That volume amounted to $ 44.7 billion, increasing 15.7% quarterly and falling 16.8% annually.

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