Residential loan origination at 3-year low

The dollar volume of new mortgage originations hit a 3-year low in the first quarter of 2017

Residential loan origination at 3-year low
The dollar volume of new mortgage originations hit a 3-year low in the first quarter of 2017.

Figures from ATTOM Data Solutions show that 1,415,847 new mortgages were originated in the quarter, down 30% from the previous quarter and 21% below the first quarter of 2016.

The total $347.9 billion of mortgages was the lowest since the first quarter of 2014.

"Rising mortgage rates made qualifying for a home purchase more difficult and refinancing an existing home loan less attractive in the first quarter," said Daren Blomquist, senior vice president at ATTOM Data Solutions. "The data also indicates more homebuyers needed help to qualify for a home purchase in the first quarter.”

Refinance loans dropped to a 10-year low of $167.9 billion, 39% down from the last quarter of 2016 and 26% down from Q1 2016. There were 675,899 refinance loans originated, down 36% from the previous quarter and down 22% from Q1 2016

Purchase loans were down to $136.6 billion, a drop of 27% from the previous quarter and 14% from Q1 2016. There were 513,350 purchase loans originated, down 29% from the previous quarter and down 18% from Q1 2016.

“Nearly 22 percent of all single-family purchase originations had multiple, non-married co-borrowers on the loan, up from 20 percent a year ago," added Blomquist.

Among 35 US cities with at least 1,000 single family purchase originations in Q1 2017, those with the highest share of non-married co-borrowers were Miami, Florida (40.2%); Seattle, Washington (37.4%); San Diego, California (28.9%); Los Angeles, California (28.2%); and Portland, Oregon (27.7%).