Overall, lenders issued $892.4 billion worth of mortgages in the first quarter, down 17% quarterly and 27% annually. The biggest contributor to the recession was a decrease in refinancing operations. About 1.45 million residential loans were converted into new mortgages in the first quarter, down 22% from the fourth quarter and 46% from a year earlier.
The number of refinanced mortgages fell for the fourth consecutive quarter, and the annual decline was the largest since 2014, according to the report. Dollar volume of refinance loans fell 20% from the prior quarter and 42% annually to $470.7 billion.
“The decline in refinancing activity in the first quarter is no surprise, with mortgage rates rising as quickly as they have,” said ATTOM Executive Vice President, Market Intelligence, Rick Sharga. , in a press release. “But many forecasts predicted that purchase loans would remain strong in 2022, and even increase both the number of loans made and the dollar volume of those loans. The weakness in purchase loan activity shows how much the combination of rising house prices and rising interest rates has impacted borrower activity this year.
Lenders issued 1.01 million mortgages to buyers in the first quarter, down 18% quarterly and 12% annually. The dollar value of loans taken out to buy residential properties fell to $371.3 billion, down 16% from the fourth quarter and 1% year-on-year.
Home equity loans were the only category that grew, 6% quarterly and 28% annually, to 249,900. HELOC mortgages accounted for 9% of all residential loans in the first quarter, up from 7% in the first quarter. fourth quarter and 5% a year ago.
Overall lending activity fell by at least 10% in 85% of metros analyzed by ATTOM and by at least 20% in 42%. The largest quarterly declines were in Huntsville, Alabama (down 62%); Saint-Louis (down 52.2%); Augusta, Georgia (down 40.8%); Montgomery, Alabama (down 37.4%) and Des Moines, Iowa (down 35.8%).
Aside from St. Louis, the metro areas with populations of at least 1 million that saw the largest declines in Q4-Q1 lending were San Jose, Calif. (down 34.1%); Boston (down 31.5%); Minneapolis (down 30.4%) and Rochester, NY (down 29.6%).
The only metro areas with increases in fourth-quarter to first-quarter mortgages were Philadelphia (up 11.4%); Laredo, Texas (up 9%) and Sioux Falls, SD (up 7.6%).
Refinancing activity decreased in the first quarter in 97% of the metros analyzed. Activity fell by at least 10% in 89% of metropolitan areas and by at least 20% in half of them. The largest quarterly declines were in Huntsville, Alabama (down 58.1%); Saint-Louis (down 49.8%); Augusta, Georgia (down 47.5%); Anchorage, Alaska (down 45.1%) and San Jose, California (down 41.9%).
The metro areas with the largest increases in Q4 Q1 refinance loans were Philadelphia (up 7.8%); Macon, Georgia (up 4.6%); Laredo, Texas (up 4.5%); Lexington, Ky. (up 3.9%) and Beaumont, Texas (up 3.2%).
Residential mortgage purchases have decreased in 95% of the cities analyzed. Lending to homebuyers fell by at least 10% in 78% of metropolitan areas and by at least 20% in just over half.
The largest quarterly declines were in Huntsville, Alabama (down 61.3%); Saint-Louis (down 55.3%); Utica, NY (down 50.7%); Lafayette, Indiana (down 50%) and Duluth, Minnesota (down 45.9%).
The biggest increases include Lafayette, La. (up 16.7%); Laredo, Texas (up 16.5%); College Station, Texas (up 16.2%); Philadelphia (up 12.8%) and Warner Robins, Georgia (up 12.2%).