By DON FENLEY
TRI-CITIES, Tenn. – Real estate loans posted their biggest quarterly decline in 18 years during the third quarter. They now lag the previous quarter by 16.9% – their biggest quarterly decline in 18 years. Loans are also down 42.1% from last year.
Much of the decline was driven by downturns in both refinance and purchase loan activity, according to ATTOM Data Solutions Residential Property Mortgage Origination Report.
Total loans are now performing slightly better than they did in Q1 2001.
“There are no surprises in this quarter’s loan origination numbers, as the unprecedented jump in mortgage rates has battered both the purchase and refinance markets,” said Rick Sharga, executive vice president of market intelligence at ATTOM. “Prospective homebuyers have been priced out of the market by the combination of 7 percent mortgage rates and higher home prices. And refinance activity will probably continue to decline since the majority of homeowners have loans with sub-4 percent interest rates.”
The rate of decline for the region’s two metro areas has been about the same since the last quarter of 2021.
Detailed reports and charts on home purchase loans, refinance loan, and home equity loans will be posted later this week and next week.
Categories: REAL ESTATE