Mortgages in the second quarter are down quarterly by 11% and annually by 3%.

Fewer mortgages were originated in the second quarter of 2022, the fifth quarterly decline in a row, according to a report released by ATTOM, the nationwide property data firm. Just 2.39 million mortgages, secured by residential property, were originated in the second quarter, a 13% drop from the first quarter, according to ATTOM's second-quarter 2022 U.S. Residential Property Mortgage Origination Report. The total also is down 40% from the second quarter of 2021, the biggest annual drop since 2014, ATTOM said. Lenders issued $807.8 billion worth of mortgages in the second quarter of 2022, down quarterly by 11% and annually by 3%, the report states. The annual decrease in the dollar volume of loans was the largest in eight years, ATTOM said. “Mortgage rates that have virtually doubled over the past year have decimated the refinance market and are starting to take a toll on purchase lending as well,” said Rick Sharga, executive vice president of market intelligence at ATTOM. The downturn in total activity resulted from just 941,000 residential loans being rolled over into new mortgages during the second quarter, which was down 36% from the first quarter of 2022 and down 60% from last year. Refinance lending decreased for the fifth straight quarter, hitting a point that was just one-third of what it was in early 2021. The dollar volume of refinance loans was down 35% from the prior quarter and 56% annually, to $310.1 billion. For the first time since early 2019, refinance activity in the second quarter did not represent the largest chunk of mortgages, dropping to 39% of all loans. That was off from 53% in the first quarter and from a recent peak of 66% in early 2021.

Source: National Mortgage Professional