All major mortgage categories declined in the first quarter, the data showed. Purchase loans fell 9.9% from the prior period to around 565,000, while refinance deals dipped 1.9% to 491,000. Home equity lines of credit slid 9% to 222,000.
The $405.6 billion in total lending was down 4.8% from the fourth quarter and 4.5% annually.
Purchase mortgages remained the largest segment, accounting for over 40% of all loans despite the quarterly drop. However, refinance activity rose 11.4% from a year ago due to a short-lived jump in 2023, even as it remained 82% below the 2021 peak when mortgage rates were below 3%.
“With little sign that interest rates are coming down, which could fire up refinance and HELOC lending, or that supplies of homes for sale are going up, any increase is likely to be limited,” said Rob Barber, CEO at ATTOM.
FHA and VA loans accounted for over one-fifth of all mortgages as affordability pressures drove more buyers to seek government-backed financing. Meanwhile, the typical purchase loan amount hit a new high of $329,800 amid surging home prices, even as median down payments declined nearly 21% from the prior quarter to $26,700.
