During the third quarter, 1.77 million mortgages were originated for residential properties with one to four units, a 1.6% decrease from the prior quarter but a 1.9% increase from the same period one year earlier.
According to data from ATTOM, the $600.4 billion in total dollar mortgage origination volume during the third quarter represented a 3.1% decrease from the second quarter but a 3.1% increase from the third quarter of 2024. Purchase loans declined quarter-over-quarter and year-over-year while refinance loans and HELOCs edged higher on both a quarterly and annual basis. FHA loans accounted for 14% of all loans while Veterans Administration loans represented 5.7% and construction loans made up 1.1%.
Mortgage activity increased quarterly in 98 of the 209 metropolitan areas analyzed by ATTOM. The biggest quarterly in metros with populations exceeding 1 million were in Buffalo, New York (up 17.3%), Cleveland (up 12.0%), New York City (up 10.2%), Philadelphia (up 8.1%), and Portland (up 7.5%).
“Mortgage activity eased back a touch from the spring pickup, but it’s still running slightly ahead of last year,” said Rob Barber, CEO at ATTOM. “The modest lift in refinance and HELOC activity suggests some homeowners are taking advantage of small rate improvements and tapping equity, while purchase activity remains constrained by affordability. Taken together, Q3 looks like a market treading water rather than turning a corner.”
Separately, the Mortgage Bankers Association (MBA) reports the national median payment applied for by purchase applicants decreasing to $2,039 in October from $2,067 in September. It was down by $88 from one year ago, equal to a 4.2% decrease.
The national median mortgage payment for conventional loan applicants was $2,063, down from $2,105 in September and down from $2,134 in October 2024. The national median mortgage payment for FHA loan applicants was $1,789 in October, down from $1,792 in September and down from $1,842 in October 2024.
“Affordability conditions have now improved for the fifth consecutive month because of lower mortgage rates, higher household earnings, and flattening home-price growth,” said Edward Seiler, MBA’s associate vice president of housing economics and executive director of the Research Institute for Housing America.
