“Mortgage activity perked up a bit in the second quarter, but it’s not a clear signal that the market has turned a corner,” said Rob Barber, CEO of ATTOM. “The increase in purchase and refinance activity reflects some buyer and homeowner response to marginal rate improvements, but underlying affordability and economic uncertainty continue to hold the market in check. This was a typical spring bounce, not yet a breakout.”
Purchase loan activity totaled just over 758,000 in Q2, representing a 5% decline from the previous year despite the quarterly improvement. Major metropolitan areas showed mixed results, with Los Angeles up 23.4%, Chicago up 28.1% and Houston up 17.6%. New York, the nation’s largest metro area, saw a 4.7% decrease.
Refinance lending showed stronger performance, with 689,217 loans issued—up 16.4% from the prior quarter and 23.8% from a year earlier. Refinance activity increased in 188 of the 212 metropolitan areas analyzed, with Boston leading at 91.6% growth.
Home equity lines of credit also gained momentum, reaching 307,046 originations—a 16.2% quarterly increase. However, their share of total loans fell slightly to 17.5% as overall lending activity expanded.
Government-backed lending posted gains as well. FHA loans rose to 250,683 originations, capturing 14.3% of the market. VA loans reached 100,628, comprising 5.7% of total activity. Construction loans declined to 26,070, representing just 1.5% of all originations.