In the second quarter, there was a significant increase in mortgage activity, with a 19.4% rise from the first quarter and a 6.3% gain from the same period last year. The total loan volume also saw a substantial increase, reaching $601.7 billion, which is a 22.8% rise from the prior quarter and a 10.3% increase year over year.
Rob Barber, CEO of ATTOM, noted that while there was improvement in the market, it was still limited. He emphasized that the increase in purchase and refinance activity was driven by marginal rate improvements, but underlying affordability and economic uncertainty are still holding the market back.
Analysis by ATTOM showed that mortgage activity rose in 201 out of 212 metropolitan areas. Indianapolis saw the largest quarterly increase, followed by San Jose, Rochester, Boston, and Buffalo. On the other hand, North Port-Sarasota and Myrtle Beach experienced declines.
Purchase lending posts modest growth
Despite a 5% decline from the previous year, purchase loans totaled over 758,000 in the second quarter, showing an increase from the first quarter. Loan growth was observed in 97% of metro areas, with significant increases in Washington, D.C., Chicago, Los Angeles, and Houston.
New York was among the few large metros that experienced a decline in purchase lending, down 4.7%.
Refinance activity jumps
Refinance lending surged to 689,217 loans in the second quarter, marking a 16.4% increase from the first quarter and a 23.8% rise from the same period in 2024. Refinancing accounted for 39.3% of all originations, slightly lower than in the first quarter.
Boston led the way in refinance activity among major metros, followed by Rochester, San Jose, Providence, and Hartford. Salt Lake City and Miami saw minimal increases in refinance activity.
Other lending categories
In addition to mortgage activity, borrowers also increased their use of home equity lines of credit (HELOCs), which rose to 307,046 originations, up 16.2% from the first quarter. HELOCs accounted for 17.5% of all loans, with the largest increases seen in Buffalo, Minneapolis, Tulsa, San Jose, and Grand Rapids.
FHA loans increased to 250,683, representing 14.3% of all originations, while VA loans rose to 100,628, making up 5.7% of the market. Construction loans saw a slight decline to 26,070, accounting for 1.5% of all originations.