Residential mortgage originations are in trouble as the refinance volume took a plunge for 2017, according to a recent report. Attom Data Solutions released its 2017 finding and reveals a 19% year-over-year drop in HECM originations.
"Over 1.9 million loans secured by residential property were originated in the quarter, with 818,158 of them being refinance loans," according to National Mortgage News.
"Refinance loan originations were down 34% from the previous year and 17% from the previous quarter. And with mortgage rates expected to increase this year, refinancing may look even less appealing and that would eliminate more potential candidates."
In a dataset illustrating the top performers in the residential mortgage sector, Quicken Loans led the way with the most residential mortgages. The company's refinance market turned over 213,227 mortgages ahead of Wells Fargo, Chase Bank, Loan Depot and Caliber Home Loans, all of which came in under 150,000 refinanced loans.
"'The falloff in refinance originations continued for the third straight quarter, but purchase originations held steady compared to a year ago despite ballooning down payment amounts that make it more difficult for first-time homebuyers to compete — as evidenced by the three-year low in the share of FHA buyers,' said Daren Blomquist, senior vice president at Attom Data Solutions, in a press release," according to the report.
In some cases residential real estate saw signs of growth. For instance, construction loans in the residential real estate market increased 33% annually, according to the report.
To learn more about the current state of the residential mortgage originations, click on the image above.