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ATTOM’s just released Q3 2021 U.S. Residential Property Mortgage Origination Report shows that overall mortgage lending was down 8 percent in Q3 2021, marking the second straight quarterly decline and the first time in more than two years that total lending decreased in two consecutive quarters.

The Q3 2021 loan origination analysis conducted by ATTOM noted the quarterly decrease in mortgage lending was the first time in any year since at least 2000 that lending activity declined in both the second and third quarters, typically peak buying seasons.

According to the analysis, 3.59 million mortgages secured by residential property were originated in Q3 2021 in the U.S. The report noted that on the refinance side, 1.99 million home loans were rolled over into new mortgages in Q3 2021, down 13 percent from Q2 2021 and 3 percent from Q3 2020. The quarterly decline in refinance mortgages in Q3 2021 marked the second straight quarterly decline and the largest in three years.

ATTOM’s most recent loan origination report also noted the number of purchase loans declined as well in Q3 2021, as lenders issued 1.36 million mortgages to buyers. That figure was down 2 percent quarterly, although still up annually by 17 percent.

The Q3 2021 report mentioned that home-equity lending, meanwhile, rose for the second straight quarter, which last happened in mid-2019. The report also noted the tally of home-equity lines of credit, while down annually by 9 percent, rose 2 percent between the second and third quarters of 2021, to about 238,500.

Also according to the report, the national median down payment, the amount borrowed and the ratio of down payments to median home prices in Q3 2021 again hit the highest levels since at least 2005. The report stated the median down payment on single-family homes purchased with financing in Q3 2021 stood at $27,500. That figure was up 5.8 percent from $26,000 in Q2 2021 and 41 percent from $19,502 in Q3 2020.

In this post, we take a deep data dive among U.S. metro areas with a population greater than 200,000 and 1,000 or more loans originated in Q3 2021, to uncover the top 10 markets with the highest median down payments on single-family homes and condos purchased with financing in Q3 2021.

Those top 10 metros include: San Jose-Sunnyvale-Santa Clara, CA (median down payment of $336,700); San Francisco-Oakland-Hayward, CA ($253,000); Los Angeles-Long Beach-Anaheim, CA ($166,500); Boulder, CO ($151,325); Oxnard-Thousand Oaks-Ventura, CA ($145,540); San Diego-Carlsbad, CA ($134,000); Bridgeport-Stamford-Norwalk, CT ($110,600); Santa Rosa, CA ($110,500); Seattle-Tacoma-Bellevue, WA ($107,000); and Boston-Cambridge-Newton, MA-NH ($101,125).

ATTOM’s latest mortgage origination analysis also reported that the median down payment of $27,500 represented 8 percent of the nationwide median sales price for homes purchased with financing in Q3 2021, up from 7.8 percent in Q2 2021 and 6.5 percent in Q3 2020. The report also noted that among homes purchased in Q3 2021, the median loan amount was $295,954, up 2.8 percent from Q2 2021 and 13 percent from Q3 2020.

Want to learn more about home purchase down payments and other loan origination trends in your area? Contact us to find out how!

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