While mortgage originations remain constrained due to affordability concerns, refinancing is driving increased activity as mortgage rates have come down from record highs to near 6%, according to the latest data from ATTOM.
ATTOM’s Mortgage Origination Report for Q4 2025 found that 1.72 million mortgages secured by residential property were issued, a 6% decrease from Q3, but level with the number of loans originated at the same time last year. Overall lending rose slightly, as the number of mortgages increased quarter-over-quarter in 29.1% (60) of the 206 metropolitan statistical areas with sufficient data to analyze.
“Loans, particularly for new purchases, typically slow down in the fourth quarter as fewer people are buying houses,” said ATTOM CEO Rob Barber. “But this year, that seasonal slowdown was offset by a rise in refinancing, likely driven by the steady drop in mortgage rates, which have been some of the lowest we’ve seen since 2022.”
Specifically, ATTOM found there were 732,615 refinancing loans in Q4 2025, a 6% increase from Q3 and up 11% from the same time last year. Refinancing loans accounted for 42.6% of all loans, up from 37.8% the previous quarter and 38.3% at the same time last year. The number of refinancing loans also rose in 69.4% (143) of the 206 metro areas analyzed.
ATTOM noted that this was the “first time refinancing loans have accounted for a greater share of all loans than purchase loans since Q1 2022.”
In addition, home-equity line of credit (HELOC) loans, while down 10% from Q3, increased 9% annually in Q4 to 301,164. HELOC loans accounted for 17.5% of all loans, down from 18.3% in Q3 and up from 16% in Q4 2024.
On the other hand, there were 685,583 home purchase loans in Q4 2025, a 14% drop from Q3 and a 13% drop from the same time last year. Purchase loans made up 39.9% of all loans issued in the final quarter of the year, down from 43.9% in the third quarter and 45.7% in Q4 2024. Purchase lending decreased in 89.8% (185) of the 206 metro areas analyzed.
Government-backed loans (FHA and VA) also remained challenged in the fourth quarter. FHA loans accounted for 11.4% of all loans in Q4, down from 14.1% in Q3 and 15.3% last year. VA loans made up 7.4% of all loans, up from 5.7% in Q3 and 6.6% last year.
