Mortgage Origination Report
The total dollar volume of mortgage originations in Q3 2025 reached $600.4 billion, showing a 3.1% decline from Q2 2025 but a 3.1% increase compared to Q3 2024. Purchase lending experienced a decrease both quarterly and yearly, while refinance and home equity lending saw modest gains during the same periods.
Rob Barber, CEO of ATTOM, stated, “Mortgage activity eased back slightly from the spring pickup, but it is still ahead of last year. The slight increase in refinance and HELOC activity indicates that some homeowners are taking advantage of rate improvements and tapping equity, while purchase activity continues to be affected by affordability. Q3 appears to be a market in a holding pattern rather than a significant shift in direction.”
Mortgage activity showed an increase quarter over quarter in 98 out of 209 metro areas analyzed. Among metros with populations of at least 1 million, the largest gains were seen in Buffalo, New York (up 17.3%); Cleveland (up 12%); New York City (up 10.2%); Philadelphia (up 8.1%); and Portland, Oregon (up 7.5%).
During Q3, purchase loan originations decreased to 765,667, a drop of 4.8% from Q2 and 6.6% from Q3 2024. The dollar volume of purchase loans also declined to $309.6 billion, down 5.2% from the previous quarter and 3.3% annually. Purchase loans represented 43.2% of all originations and 51.6% of total volume, compared to 44.6% and 52.7% in Q2, respectively.
Refinance originations slightly increased to 688,502, up 0.2% from Q2 and 12% from Q3 2024. Despite a 1.2% quarterly decrease, refinance volume rose 12.5% annually to $229.7 billion.
Refinances accounted for 38.8% of all loans and 38.3% of total lending dollars, slightly higher than the previous quarter.
HELOCs Increase, FHA/VA Loans Drop
Home equity line of credit (HELOC) originations increased to 319,318 loans, up 2.8% quarterly and 4.6% annually. HELOC dollar volume rose to $61.1 billion, up 0.7% from Q2 and 5.9% from Q3 2024.
HELOCs represented 18% of all mortgages and 10.2% of total dollar volume in Q3, up from 17.2% and 9.8% in Q2, respectively.
Government-backed and construction lending saw slight declines in Q3. Federal Housing Administration loans accounted for 14% of all originations, down from 14.9% in Q2. U.S. Department of Veterans Affairs loans made up 5.7%, down from 5.9%, while construction loans dropped to 1.1% of all mortgage activity, compared to 1.5% in Q2.