With interest rates dipping below 3 percent for a 30-year fixed-rate loan, home mortgages originated in the third quarter of 2020 represented an estimated
The increases came in part from a jump in purchase mortgages, which grew faster on a quarterly basis than the number of refinance loans for the first time in more than a year.
Lenders issued roughly 1.05 million home-purchase mortgages in the third quarter of 2020, up 28 percent from the second quarter and 25 percent from the third quarter of 2019. The dollar amount of purchase loans jumped to
Refinance activity, meanwhile, continued to represent the majority of home loans and kept growing, but at a smaller quarterly pace than purchase lending. The number of refinancing loans went up only 16 percent from the second quarter to the third quarter of 2020, to 1.96 million, while the amount refinanced increased 15 percent, to
As a result, the amount of money lent to buyers taking out new mortgages in the third quarter of 2020 represented 34.5 percent of all lending, up from 30.6 percent in the second quarter of 2020; the portion refinanced by owners rolling over old mortgages dipped from 63.1 percent in the second quarter of 2020 to 60.3 percent in the third quarter of 2020.
While purchase and refinancing activity increased, home equity lending continued declining, with the dollar volume dipping another 1 percent in the third quarter to the lowest level since 2014.
The overall rise in home lending during the third quarter resumed as the virus pandemic continued spreading throughout
“The home-loan industry got even busier in the third quarter of 2020, with the housing market still operating as if the recession brought on by the pandemic didn’t exist. Buyers and owners, lured by low mortgage rates, kept lining up for loans at levels not seen in more than a decade,” said
Purchase originations rise 25 percent from second quarter to third quarter in half the nation
Lenders originated 1,050,624 purchase mortgages in the third quarter of 2020, up 28.1 percent from the second quarter of 2020 and up 25.4 percent from the third quarter of 2019, to the highest level since the third quarter of 2006.
Residential purchase mortgage originations increased from the second to the third quarter of 2020 in 204 of the 215 metro areas that have a population greater than 200,000 and at least 1,000 total loans (94.9 percent) and increased by at least 25 percent in 115 metro areas (53.5 percent). The largest quarterly increases were in
Metro areas with at least 1 million people and the biggest quarterly increases in purchase originations were
Counter to the national trend, residential purchase mortgage lending decreased from the second quarter to the third quarter of 2020 in just 11 of the 215 metro areas analyzed in the report (5.1 percent). The largest decreases were in
Refinance mortgage originations up 16 percent from second quarter
Lenders issued 1,955,668 residential refinance mortgages in the third quarter of 2020, up 15.7 percent from the second quarter of 2020 and 84.5 percent from the third quarter of 2019.
Refinance activity increased from the second to the third quarter of 2020 in 183 of the 215 metropolitan statistical areas analyzed in the report (85.1 percent) and rose by at least 25 percent in 56 metro areas (26 percent). The largest quarterly increases were in
Metro areas with at least 1 million people with the biggest increases in refinance activity from the second quarter to the third quarter of 2020 were
Metro areas with the biggest declines in refinancing loans from the second to the third quarter of 2020 were led by
HELOC originations down 7 percent from the prior quarter
A total of 244,555 home equity lines of credit (HELOCs) were originated on residential properties in the third quarter of 2020, down 7.1 percent from the previous quarter and down 28.7 percent from a year earlier. The latest number marked the lowest point since the first quarter of 2014.
Residential HELOC mortgage originations decreased from the second to the third quarter of 2020 in 58.3 percent of metropolitan statistical areas that have a population greater than 200,000 and sufficient data to analyze. The largest decreases were in
Counter to the national trend, residential HELOC mortgage originations stayed the same or increased from the second to the third quarter of 2020 in 41.7 percent of metro areas analyzed for the report. The biggest increases were in
FHA loan share rises
Mortgages backed by the
Residential loans backed by the
Median down payments and total amount borrowed hit new highs
The median down payment on single-family homes and condos purchased with financing in the third quarter of 2020 was
The median down payment of
Among homes purchased in the third quarter of 2020, the median loan amount was
ATTOM Data Solutions analyzed recorded mortgage and deed of trust data for single-family homes, condos, town homes and multi-family properties of two to four units for this report. Each recorded mortgage or deed of trust was counted as a separate loan origination. Dollar volume was calculated by multiplying the total number of loan originations by the average loan amount for those loan originations.
About ATTOM Data Solutions
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SOURCE ATTOM Data Solutions