Mortgage originations remain down quarterly due to elevated mortgage rates; however, annual growth has been rising due to bettering signs, according to the latest data from ATTOM.
ATTOM’s Mortgage Origination Report for Q3 found that while mortgage originations were down 1.6% quarterly, originations have grown 1.9% year-over-year. The data found that 1.77 million mortgages secured by residential property (one to four units) were issued in Q3, valuing $600.4 billion in total dollar volume.
While mortgage rates remain elevated—with the current 30-year fixed-rate mortgage sitting at an average of 6.26%—they are lower than last year (about 6.84% in November 2024) and are predicted by economists to continue getting better in 2026. This could lead to continued year-over-year and quarterly growth.
In addition, ATTOM’s report found that the $600.4 billion volume was a 3.1% decrease quarterly, but a 3.1% year-over-year increase.
While purchase loans were down both quarterly and annually (4.8% and 6.6%, respectively), refinance loans and HELOCs edged higher on both a quarterly and annual basis. Specifically, refinance loans were up 0.2% quarterly and a notable 12% annually, while HELOCs were up 2.8% quarterly and 4.6% yearly.
“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,” said ATTOM CEO Rob Barber.
Q3 also saw delays and declines in government-backed loans due to a prolonged shutdown.
Overall, ATTOM said that the Q3 data “points to a housing finance market that is stabilizing but still constrained by affordability and rate pressures.”
“As interest rates and home prices continue to influence buyer sentiment, the latest figures suggest a cautious but steady lending environment heading into the final quarter of 2025,” the report concluded.
