According to a new National Consumer Credit Trends Report, 2015 has been a booming year for mortgage origination growth. The report, from credit reporting agency Equifax, shows mortgage originations for the first quarter of the year increasing nearly 75% from last year – with first mortgages accounting for a majority of the growth. This article from HousingWire highlights the details of the report.
The latest Equifax National Consumer Credit Trends Report shows that total mortgage origination balances hit $466 billion in the first quarter, a 74.4% increase from the same time a year ago.
First mortgages grew 79.9% versus the first quarter of 2014 to $430 billion. The number of first mortgages originated in the first three months of the year was 1.78 million, a 54.9% increase over the same time a year ago and 13.6% higher than in the fourth quarter of 2014.
Originations of home equity lines of credit rose 30% to $30.9 billion and new home equity installment loans climbed 13.6% to $5.0 billion.
“The drop in mortgage rates that began in the fourth quarter of last year kicked off a refinance boomlet that accelerated in the first quarter, as rates fell further, averaging just 3.7% for the first three months of this year,” said Amy Crews Cutts, chief economist at Equifax. “While rates have recently reversed that trend and are back up to about 4%, they remain extremely low historically. These rates, coupled with a housing market that is showing signs of vigor, should carry the mortgage business over the summer.”
