Mortgage refinancings hit record high in Q2

Lenders provided over $1T in home loans amid rock-bottom interest rates

National /
Sep.September 08, 2020 10:35 AM
Mortgage refinancings jumped 200% the second quarter, a record high, as lenders provided over $1 trillion in home loans. (iStock)

Mortgage refinancings jumped 200% the second quarter, a record high, as lenders provided over $1 trillion in home loans. (iStock)

Mortgage refinancings have hit a record high, as the U.S. housing market continues to rebound from the initial shock of the coronavirus.

With interest rates at all-time lows, refinancings jumped more than 200 percent in the second quarter compared to a year ago, according to the Wall Street Journal. Lenders provided more than $1 trillion in home loans — including both originations and refinancings — between April and June, the Journal reported, citing mortgage data firm Black Knight. That marked the biggest quarter on record since Black Knight began collecting the data in 2000.

Purchase mortgages, however, dropped 8 percent from a year earlier, according to the Journal.

After a short drop at the onset of the pandemic, home sales have risen steadily as people are pivoting to working from home and are seeking to purchase larger spaces. In July, home sales rose almost 25 percent, the highest monthly increase on record.

Mortgage rates fell below 3 percent in July, prompting a burst of refinancings and new home loan purchases.

Millennials have been responsible for much of the boost to the mortgage and housing market. Millennials made up 61 percent of home loans in July, up five percentage points from June, according to a recent report from mortgage software company Ellie Mae.

Mortgage rates dropped after the Federal Reserve announced earlier this year that it would slash interest rates to close to zero, with plans to buy hundreds of billions of dollars in mortgage backed securities.
[WSJ — Keith Larsen


Related Articles

arrow_forward_ios
(Illustration by The Real Deal with Getty)
Rising mortgage rates lock out homebuyers, trigger layoffs
Rising mortgage rates lock out homebuyers, trigger layoffs
United Kingdom Chancellor of the Exchequer Kwasi Kwarteng
Turmoil hits United Kingdom mortgage market
Turmoil hits United Kingdom mortgage market
 Lakeland Bank president Thomas Shara (Lakeland Bank, Illustration by The Real Deal with Getty)
In redlining case, New Jersey lender to pay $12M
In redlining case, New Jersey lender to pay $12M
(Illustration by The Real Deal with Getty)
Mortgage rates climb to 15-year high
Mortgage rates climb to 15-year high
Divvy Homes CEO Adena Hefets (LinkedIn, Illustration by The Real Deal with Getty)
Divvy Homes cuts 12% of staff
Divvy Homes cuts 12% of staff
(Illustration by The Real Deal with Getty Images)
Home prices cooled at historic rate in July
Home prices cooled at historic rate in July
(Photo Illustration by The Real Deal with Getty Images)
Cooling Sun Belt markets lead canceled home contracts
Cooling Sun Belt markets lead canceled home contracts
Disappearing starter homes
New York City’s incredible shrinking starter home market
New York City’s incredible shrinking starter home market
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...