Mortgage Originations Experience Biggest Annual Drop in 21 years
ATTOM Data says mortgage originations are experiencing their biggest annual drop in 21 years. The data comes from their third-quarter 2022 U.S. Residential Property Mortgage Origination Report, which shows that 1.97 million mortgages secured by residential property (1 to 4 units) were originated in Q3 2022 in the U.S. That figure was down 19% from Q2 2022 (the 6th quarterly decrease in a row)and down 47% from the Q3 2021 – the biggest annual drop in 21 years. ATTOM says the annual decrease in the dollar volume of mortgages stood out as the largest since at least 2001 and was the latest sign that the 11-year U.S. housing market boom is losing steam.
“There are no surprises in this quarter’s loan origination numbers, as the unprecedented jump in mortgage rates has battered both the purchase and refinance markets…Prospective homebuyers have been priced out of the market by the combination of 7 percent mortgage rates and higher home prices. And refinance activity will probably continue to decline, since the majority of homeowners have loans with sub-4 percent interest rates.” Said Rick Sharga, executive vice president of market intelligence at ATTOM.
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