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Last updated on February 3rd, 2021 at 10:10 am
According to the ATTOM Data Solutions 2020 U.S. Residential Property Mortgage Origination Report – The second quarter of 2020 saw 1.69 million refinance mortgages secured by residential properties.
The homeowner’s refinance loans are at the highest levels for the past seven years. The amount of refinanced also is highest in 17-years.
Which are almost 50% more from the prior quarter and over 100% from the same period in 2019.
Now the mortgage rates are also all-time low around 3% for a 30-year fixed-rate loan, refinance mortgages originated in the second quarter of 2020 represented an estimated $513 billion in total dollar volume.
That number was up 130% from a year ago, to the highest point in almost 17 years.
Of all lending activity in the second quarter of 2020, 62% of homeowners converted their old mortgage into new ones, so refinance loans pushed the total number of home loans to 2.72 million in the second quarter of 2020.
In the second quarter of 2020, while refinancing activity shot up, Purchase mortgage activity dipped to just 28.8% of all home loans.
Lenders originated 782,829 residential purchase mortgages in the second quarter of 2020, up 14% from the previous quarter, but down 2% from the same period in 2019.
HELOCs declined to only 9.2%, which is the lowest level in seven years.
A total of 249,744 home equity lines of credit (HELOCs) were originated on residential properties in the second quarter of 2020, down 9% from the previous quarter and down 25% from a year earlier.
Todd Teta, chief product officer at ATTOM Data Solutions said, “The second quarter of 2020 really was a tale of two markets for lenders.
One saw a continued flood of homeowners refinancing their loans at lower interest rates while the other saw a drop in home-purchase and home-equity borrowing as the economy sagged under virus-related lockdowns, how this plays out in the third quarter will depend on how many homeowners still want to roll over their loans and whether the economy recovers enough to boost home sales.
The lending market remains buoyed by cheap money but clouded by major uncertainty.”
In the second quarter of 2020 Lenders originated 1,686,340 refinance mortgages, which is 47% more than the 1st quarter and 126% higher than the 2nd quarter of 2019.
Except for Pittsburgh, Pennsylvania where to refinance mortgages decreased in the second quarter, all the 210 metro areas saw an increase in residential refinance mortgage, some saw it doubled, at some places small increase.
Mortgages backed by the Federal Housing Administration (FHA) accounted for 248,544, or 9.1% of all residential property loans originated in the second quarter of 2020.
That was down from 12.6% of all loans in the first quarter of 2020 and 13.4% in the second quarter of 2019.
Reference Source: NMP
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