Key Highlights

  • According to ATTOM Data Solutions,07M refinance mortgages secured by residential property (1 to 4 units) originated in Q12 2020
  • Refinance loans accounted for 55.7% of all home loans in Q1 2020
  • Q1 2020 refinance mortgages represented estimated $328.5B in total dollar volume

Refinance mortgages for residential properties (1 to 4 units) were the name of the mortgage market game in Q1 2020. With interest rates at nearly all-time lows, refinance loans represented some 55.7% of the 1.92M home loans that were secured in Q1 2020, according to ATTOM Data Solutions’ its Q1 2020 US Residential Property Mortgage Origination Report. The dollar amount associated with those refinance mortgages originated in Q1 2020 accounted for an estimated $328.5B in total dollar volume.

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“Home loan data was way up again in the first quarter of the year, with refinancing activity again accounting for more than half the total volume of mortgages. The number and dollar value of home loans market yet another sign of how charged up the US housing market continued to be in the early moths of the year when everything was still pointing in the right directions.” Said Todd Teta, chief product officer with ATTOM. “Unfortunately, that is all uncertain now due to the economic fallout from the virus pandemic that could throw the market into a downturn. But at least the market heads that uncertainty with some of the strongest home loans – and by extension, overall market – numbers since the aftermath of the last recession.”

Though down -16% from Q4 2019, refinance mortgages in Q1 2020 were up +87% from Q1 2020. Residential refinance mortgage originations increased y/y by 96% in metros with populations greater than 200,000 people and with at least 1,000 total loans. Metros leading the pack in refinance mortgages included…

  • +129.3% – Chicago
  • +115.9% – Los Angeles
  • +87% – Dallas-Fort Worth
  • +71.2% – New York
  • +53.1% Houston

The five metros that showed a decrease in the number of refinance loans y/y included McAllen TX, Beaumont TX, Syracuse NY, Amarillo TX and Youngstown OH.

Purchase mortgage originations in Q1 2020 increased +62% from one year ago in metros with populations greater than 200,000. Leading the pack in purchase mortgage originations were…

  • +229% – Savannah GA
  • +230.9% – Lafayette LA
  • +143.4% – South Bend IN
  • +121.7% – Los Angeles
  • +115.5% – Ventura CA

It will obviously be very interesting to see how these Q1 2020 refinance and purchase mortgage originations compare with forthcoming comparable statistics for Q2 2020.

 

Thanks to ATTOM Data Solutions.

Also read: Big Takeaways from ATTOM’s Year-End Sales Report, Economy Is Tanking – Why Aren’t Home Prices?, Foreclosure Activity Creeping Up by +13% in January 2020