The
country
saw
1.62
million
residential
mortgage

originations
in
the
second
quarter
of
2024,
an
increase
of
23.2%
from
the
previous
quarter,
and
the
first
quarterly
gain
in
a
year.

The
increase
in
overall
lending
in
Q2
came
amid
the
Spring
homebuying
season
and
lower

mortgage
interest
rates
that
dipped
downward
after
months
of
increases,
according
to


Attom’s
Q2
residential
property
mortgage
origination
report. 

“The
mortgage
industry
got
one
of
its
biggest
boosts
in
years
during
the
second
quarter,
supported
by
a
combination
of
the
usual
Springtime
homebuyer
demand
coupled
with
more
attractive
mortgage
rates,”
said
Rob
Barber,
CEO
at
ATTOM. 

In
the
second
quarter,
purchase
loans
were
the
most
common
type
of
mortgage
in
the
U.S.,
accounting
for
48.5%
of
all
mortgages.
Refis
followed
with
33.8%,
and
home-equity
lending
made
up
17.7%.

Purchase
loan
activity
jumped
32.7%
from
the
previous
quarter
to
about
783,000;
refinance
deals
rose
by
10.3%
to
about
546,000;
and
home
equity
line
of
credit
(HELOC)
increased
26.5%
to
about
283,000.

Mortgages
backed
by
the

Federal
Housing
Administration
(FHA)
decreased
in
the
second
quarter
of
2024
as
a
percentage
of
all
home
loans
after
10
straight
quarterly
increases.
They
accounted
for
13.9%
of
all
residential
property
loans
originated
in
the
second
quarter
of
2024. 

Residential
loans
backed
by
the

U.S.
Department
of
Veterans
Affairs
(VA)
totaled
5.1%
of
all
residential
property
loans
originated
in
the
same
period. 

In
the
second
quarter
alone,
lenders
issued
close
to
$533
billion
worth
of
residential
mortgages,
up
27.6%
from
Q1
2024
and
1.1%
from
Q2
2023. 

Lending
activity
from
April
to
June
jumped
23.2%
from
the
previous
three
months,
but
still
down
1.6%
from
12
months
ago
and
61.2%
from
a
high
point
hit
in
2021
when
the
average
30-year
fixed-rate
mortgage
fell
to
around
2.65%.

“We
shouldn’t
read
too
much
into
one
great
quarter.
A
similar
trend
occurred
last
Spring,
with
lending
dropping
off
significantly
later
in
the
year.
But
with
interest
rates
settling
down
and
projections
for
more
cuts
from
the


Federal
Reserve
over
the
coming
months,
it
wouldn’t
be
surprising
if
business
increased
even
more
for
lenders
over
the
rest
of
2024,
or
at
least
didn’t
drop
significantly,”
said
Barber.

Fed
chair
Jerome
Powell

signaled
that
the
central
bank
was
poised
to
cut
interest
rates
in
September
during
the
Kansas
City
Fed’s
annual
conference
at
Jackson
Hole
in
Wyoming,
one
of
the
most
closely
watched
speeches
of
the
year.

Banks
and
other
lenders
issued
a
total
of
1.62
million
residential
mortgages
in
Q2
2024,
up
from
1.31
million
in
Q1,
but
still
down
from
1.64
million
in
Q2
2023
and
far
below
4.12
million
in
Q1
2021.
The
recent
gain
mostly
reversed
three
straight
quarters
of
declines. 

Among
homes
purchased
with
financing
in
the
second
quarter,
the
median
loan
amount
rose
7.2%
from
the
previous
quarter
to
$368,207
as
the
national
median
home
price
hit
a
new
high
of
about
$420,000.

Median
down
payment
increased
by
11.1%
quarter
over
quarter
to
$24,250.

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