Mortgage lending in the United States experienced modest growth in the third quarter of 2024, according to ATTOM’s latest Q3 2024 Loan Mortgage Origination Report. With 1.67 million mortgages issued during the period, lending rose 1.9% from the prior quarter. However, activity remained well below historic highs seen during the pandemic-driven housing boom.
Refinancing Leads the Way
The increase in lending was primarily fueled by a surge in refinancing, with 587,691 loans issued—a 6.9% quarterly rise. This marks the highest level for refinancing in two years as interest rates for 30-year fixed loans fell to near 6% by quarter’s end. Refinance loans accounted for 35.3% of all mortgage originations in Q3 2024, up from 33.6% in the previous quarter.
Rob Barber, CEO of ATTOM, noted, “The third quarter brought another small boost to lending as falling mortgage rates motivated homeowners to refinance. However, challenges like elevated home prices and low inventory continued to weigh on purchase loans.”
Purchase Loans Decline Amid Market Constraints
While overall mortgage activity grew, purchase loans saw a 1.7% decline, with 782,220 issued in Q3 2024. This drop highlights the ongoing challenges buyers face, including limited housing inventory and high home prices.
Purchase loans remained the largest segment of the mortgage market, representing almost 50% of all loans. However, this figure was down significantly from its peak in 2021, reflecting the current challenges in the housing market.
Home-Equity Lending Shows Resilience
Home-equity lines of credit (HELOCs) also contributed to the growth, increasing by 2.3% quarterly to 296,905 loans. This marked a continued recovery from earlier declines and brought HELOC lending to its highest level since early 2021. HELOCs accounted for 17.8% of total lending activity.
Lending Volume by the Numbers
The total dollar volume of residential mortgages reached $553.1 billion in Q3 2024, a 2.9% quarterly and 6.6% annual increase. Despite the improvement, lending remains more than 60% below the highs of 2021.
Regional Trends Highlight Divergence
Mortgage activity varied across the country, with notable growth in metro areas like Anchorage, AK (+78.6%); Yuma, AZ (+33.3%); and Rochester, NY (+20.1%). Conversely, declines were recorded in Boulder, CO (-44.3%) and St. Louis, MO (-36.5%).
Looking Ahead
While mortgage rates continued to drop in the third quarter, the broader housing market remains constrained by limited inventory and affordability concerns. The modest growth in lending underscores a housing market adapting to new conditions, with refinancing and home-equity products driving activity while purchase loans face headwinds.
To learn more and access more detailed data or get the data behind the stories, contact one of ATTOM’s data experts.