A new report shows that mortgage originators may be facing some tough times as mortgage originations hit a four-year low in the first quarter. Meanwhile, the industry is still waiting on the refinance boom that has been teased following the drop in mortgage interest rates.
"According to the latest report from the Federal Reserve Bank of New York’s Center for Microeconomic Data, there were only $344 billion in mortgage originations in the first quarter, down from $401 billion in the previous quarter," reported HousingWire.
"That’s the lowest dollar amount of mortgage originations in any quarter since the third quarter of 2014."
Originations have been on the decline since the third quarter of 2018. As previously reported, mortgage delinquencies did improve in the first quarter, as well as mortgage performance.
"According to the Federal Reserve report, mortgage underwriting 'remained tight' in the first quarter, with only 10% of mortgages being originated to borrowers with credit scores under 647," according to the report.
"The median credit score of borrowers who took out a mortgage in the first quarter was 759."
To learn more about mortgage origination struggles in the first quarter of 2019, click on the image above.