ATTOM Data Solutions’ latest quarterly U.S. Residential Property Loan Origination Report has found that over 1.9 million (1,903, 364) loans secured by residential property of one to four units were originated in the fourth quarter of 2017. Residential loan originations have fallen by 19% year over year, and by 20% from the third quarter of 2017.
Refinance loan originations have fallen by 34% YOY over this period, or 17% from last quarter. Purchase loan originations have fallen 22% from the last quarter, and 1% from one year ago. Home Equity Lines of Credit originated on residential properties fell 25% from a nine-year high in the previous quarter, and 7% YOY.
“While the rise in construction loans in part reflects homeowners reconstructing in the wake of hurricane Harvey in southeast Texas, the widespread rise in construction loans in other parts of the country indicates that more homeowners are staying put and remodeling rather than trying to move up into another home that comes with a big down payment and probably a higher mortgage interest rate,” says Daren Blomquist, senior vice president at ATTOM Data Solutions.
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