Mortgage Lending Plummets Across U.S. In Q1
Summary
The first quarter of 2022 was one of the worst in years for mortgage originations, according to a report released today by Attom, the real estate data curator. Mortgage Bankers Association President Bob Broeksmit told the 2022 Secondary & Capital Markets Conference & Expo in mid-May, “We’re also confident that 2022 will still be a record year for purchase volume. The number of units will fall a little compared to last year, but the dollar amount of new purchase loans will rise to a record due to the steady increase in home prices.” “The drop-off in Q1 refinancing activity is no surprise with mortgage rates rising as rapidly as they have,” said Rick Sharga, executive vice president of market intelligence at ATTOM. The weakness in purchase loan activity shows just how much of an impact the combination of escalating home prices and rising interest rates have had on borrower activity this year.” The Attom report showed that 2.71 million mortgages secured by residential property (1 to 4 units) were originated in the first quarter of 2022 in the United States. Purchase-loan activity shrank in the first quarter of 2022 as lenders issued 1.01 million mortgages to buyers.