New data from ATTOM showed that 1.4 million mortgages were secured by residential properties during the first quarter, a 14% drop from the previous quarter.
The first quarter’s decline was attributed to a 20% drop in home purchase loans, which shrank from 738,675 in the fourth quarter of 2024 to 593,111 in this year’s first quarter. The number of residential properties refinancing fell by 12% quarter-over-quarter, to 580,170 while home equity credit lines was down by 5% to 260,267.
Home purchase loans accounted for 41.4% of the market in the first quarter, down by 2.8% from the prior quarter, while the shares of mortgage refinancing and home equity line of credit deals grew to 40.5% and 18.2% of the market, respectively.
Furthermore, ATTOM found the total dollar value of loans was down by 18% to $478 billion.
“The red-hot housing market we’ve seen over the last few years meant that most home loans were going toward new purchases, but that appears to be changing,” said Rob Barber, CEO at ATTOM. “Rather than borrowing money to buy a new property, the data shows homeowners are increasingly looking to restructure their existing mortgages or borrow equity from their homes to cover other expenses. If the current trend continues, mortgage refinancing deals will soon make up the biggest share of the home loan market.”
