ATTOM released its Third-Quarter 2025 U.S. Residential Property Mortgage Origination Report, which showed that 1.77 million residential mortgages (1 to 4 units) were issued in the third quarter. That marked a 1.6 percent decrease from the second quarter but a 1.9 percent increase from the same period last year.
The $600.4 billion in total dollar volume represented a 3.1 percent decrease from the second quarter but a 3.1 percent increase from the same time last year. Purchase loans declined quarter-over-quarter and year-over-year, while refinance loans and home equity lines of credit (HELOCs) edged higher on both a quarterly and an annual basis.
“Mortgage activity eased back a touch from the spring pickup, but it’s still running slightly ahead of last year,” ATTOM CEO Rob Barber said in a release. “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. Taken together, Q3 looks like a market treading water rather than turning a corner.”
In total, 1,773,487 mortgage loans were originated in the third quarter, down 1.6 percent from 1,802,065 in the second quarter but up 1.9 percent year-over-year. The $600.4 billion in mortgage lending volume was down 3.1 percent quarter-over-quarter and up 3.1 percent annually.
Mortgage activity increased quarterly in 98 of 209 metropolitan areas analyzed. The biggest quarterly gains among large metros with populations exceeding 1 million included Buffalo, N.Y. (up 17.3 percent), Cleveland (up 12 percent), New York (up 10.2 percent), Philadelphia (up 8.1 percent), and Portland, Ore. (up 7.5 percent).
At the same time, 111 metros saw quarterly declines in total lending, with the sharpest quarterly drops in Austin, Texas; Myrtle Beach, S.C.; Rochester, N.M.; Waco, Texas; and Columbus, Ga.
Purchase mortgage originations fell to 765,667 loans in the third quarter — down 4.8 percent from the second quarter and down 6.6 percent from the third quarter of 2024. Purchase loan dollar volume dropped to $309.6 billion, down 5.2 percent quarter-over-quarter and 3.3 percent year-over-year.
Purchase loans accounted for 43.2 percent of all originations and 51.6 percent of total dollar volume, down from 44.6 percent and 52.7 percent in the second quarter.
Purchase mortgage lending declined quarter-over quarter in 67 percent of the 209 metros analyzed. Major markets with populations exceeding 1 million with the steepest quarterly drops included Austin, Texas (down 35.6 percent), Atlanta (down 25.8 percent), San Antonio (down 19.5 percent), Washington, D.C. (down 15.8 percent), and Dallas (down 15.7 percent).
Those large metros with the strongest quarterly gains included Buffalo, N.Y.; New York; Rochester, N.Y.; Cleveland; and Philadelphia.
Refinance loan originations edged up to 688,502 in the third quarter, up 0.2 percent from the second quarter and up 12 percent from the third quarter 2024. Refinance loan volume reached $229.7 billion, down 1.2 percent quarter over quarter but up 12.5 percent annually.
Refinances accounted for 38.8 percent of all loans and 38.3 percent of total dollar volume, both slightly higher than in the previous quarter.
Refinance activity rose quarterly in 110 metros, led by the following metros with populations exceeding 1 million: Las Vegas (up 32.9 percent), New Orleans (up 17.9 percent), Phoenix (up 16.7 percent), Cleveland (up 15.4 percent), and Honolulu (up 14.8 percent).
HELOC lending increased to 319,318 loans in the third quarter — up 2.8 percent from the second quarter and up 4.6 percent from the third quarter of 2024. HELOC dollar volume rose to $61.1 billion, up 0.7 percent quarter-over-quarter and 5.9 percent year-over-year.
HELOCs made up 18 percent of all mortgage originations and 10.2 percent of total dollar volume, compared to 17.2 percent and 9.8 percent in the previous quarter.
The largest quarterly HELOC increases among metros with populations over 1 million were recorded in Portland, Ore. (up 27.6 percent), Virginia Beach, Va. (up 24.3 percent), Richmond, Va. (up 22.5 percent), Fresno, Calif. (up 18.2 percent), and Birmingham, Ala. (up 17.6 percent).