Mortgage originations elevated in the second quarter led by a lift in refinances, however the numbers present indicators of the challenges the housing market nonetheless presents to lenders, in keeping with new findings from Attom.
Total origination quantity between April and July clocked in at 1.76 million transactions, leaping 19.4% from the primary quarter’s 1.47 million, the actual property information supplier reported. On a year-over-year foundation, exercise elevated 6.3% from 1.65 million, marking the primary upturn for a second quarter since 2021.
On a greenback foundation, the second-quarter complete rose to $601.7 billion, reflecting growth of twenty-two.8% from $490 million three months earlier and 10.3% from the $545.7 billion reported a 12 months in the past.
Despite the constructive numbers, they do not but signify a breakthrough for a still-sluggish housing market, Attom mentioned.
“Mortgage exercise perked up a bit in the second quarter, but it surely’s not a transparent sign that the market has turned a nook,” mentioned CEO Rob Barber in a press launch.
Lagging buy numbers underscored a few of the enterprise strain lenders are nonetheless seeing, with originations dropping 5.3% in comparison with a 12 months in the past to 758,364 loans. On a quarterly foundation, although, purchases grew 23.7%. Purchase greenback quantity for the interval got here in at roughly $309 billion.
On the opposite hand, refinance transactions drove a lot of the business’s upswing, with debtors profiting from periodic price dips to drive lending exercise, particularly in the latter levels of the quarter. Refis surged from each the primary quarter and a 12 months in the past by 16.4% and 23.8%, respectively, to 689,217 originations. The greenback complete got here out to $232.8 billion.
“The enhance in buy and refinance exercise displays some purchaser and home-owner response to marginal price enhancements, however underlying affordability and financial uncertainty proceed to carry the market in verify. This was a typical spring bounce, not but a breakout,” Barber mentioned. .
Dampening buy demand are present home-price ranges and financial worries that go away many consumers hesitant to enter the market. That, in flip, has led some potential sellers to carry again on itemizing, Redfin reported this week. The impact has saved costs elevated even with the diminished purchaser curiosity, the actual property brokerage mentioned.
Redfin’s information confirmed the median residence gross sales worth in July clocked in at $434,189 — the best on document for that month.
Government lending, HELOCs additionally put up greater numbers
Helping to gas total growth have been originations of Federal Housing Administration- and Department of Veterans Affairs-guaranteed loans, which additionally picked up in the second quarter, Attom reported.
Total FHA-backed originations got here in at 250,683. FHA quantity elevated 7.4% from the earlier quarter and 10.6% on an annual foundation.
Meanwhile, lenders originated 100,628 VA-guaranteed mortgages, up 24.1% quarter over quarter and 21% from 12 months earlier.
With mortgage charges nonetheless greater than double their ranges from three years in the past and settled in a 50 foundation level vary for a lot of 2025, lenders have turned a few of their latest consideration to residence fairness lending. Originations of residence fairness strains of credit score rose to 307,046 in 2025’s second quarter, rising 18.2% from the earlier three months and 4.7% one 12 months earlier.
