ATTOM Data Solutions released its Q3 2016 U.S. Residential Property Loan Origination Report, showing more than 1.9 million loans were originated on U.S. residential properties (1 to 4 units) in the third quarter of 2016, down 2 percent from the previous quarter and up less than 1 percent from a year ago. The report also shows total dollar volume of loan originations increased 8 percent from a year ago to more than $502 billion, thanks to higher average loan amounts.
The loan origination report is derived from publicly recorded mortgages and deeds of trust collected by ATTOM Data Solutions in more than 950 counties accounting for more than 80 percent of the U.S. population.
“The nominal increase in overall originations compared to a year ago masks divergent refinance and purchase loan origination trends during the quarter,” ATTOM Data Solutions Senior Vice President Daren Blomquist said in a press release. “Refinance originations increased 16 percent compared to a year ago while purchase originations were down 11 percent and home equity lines of credit (HELOC) originations were down 6 percent. Uncertainty surrounding the outcome of the presidential election may have kept some would-be homebuyers on the sidelines, while the prospect of rising interest rates following the election may have prompted many homeowners to refinance to lock in low interest rates.”
A total of 876,633 refinance loans secured by residential properties were originated in Q3 2016, up 7 percent from the previous quarter. The year-over-year increase in refinance originations followed two consecutive quarters of decreases. Refinance originations accounted for 45.7 percent of all loan originations in the third quarter, up from 42.1 percent in the previous quarter and from 39.5 percent a year ago.
Among 101 metropolitan statistical areas with at least 1,000 loan originations in Q3 2016, those with the biggest year-over-year increase in refinance originations were Oxnard-Thousand Oaks-Ventura, Calif. (up 74 percent); San Diego (up 73 percent); San Jose, Calif. (up 65 percent); Honolulu (up 64 percent); and Provo-Orem, Utah (up 63 percent).
A total of 743,880 purchase loans secured by residential properties were originated in Q3 2016, down 8 percent from the previous quarter. Prior to Q3 2016, purchase originations had increased on a year-over-year basis for nine consecutive quarters. Purchase originations accounted for 38.8 percent of all loan originations in the third quarter, down from 41.4 percent in the previous quarter and from 43.8 percent a year ago.
Among 101 metropolitan statistical areas with at least 1,000 loan originations in Q3 2016, those with the biggest year-over-year decrease in purchase originations were Raleigh, N.C. (down 37 percent); Houston (down 29 percent); Naples, Fla. (down 26 percent); Philadelphia (down 24 percent); and Killeen, Texas (down 23 percent).
Counter to the national trend, 39 of the 101 metro areas analyzed in the report posted year-over-year increases in purchase loan originations, led by Boise, Idaho (up 16 percent); Lancaster, Pa. (up 15 percent); Flint, Mich. (up 14 percent); Olympia, Wash. (up 13 percent); and Cleveland (up 12 percent).
A total of 298,667 HELOCs were originated in Q3 2016, down 7 percent from the previous quarter. Prior to Q3 2016, HELOC originations had increased on a year-over-year basis for 17 consecutive quarters. HELOC originations accounted for 15.6 percent of all loan originations in the third quarter, down from 16.5 percent in the previous quarter and from 16.7 percent a year ago.