Despite housing market slowdown, mortgage lenders just had a great second quarter

Lenders made more than $500B worth of loans, a more than two-year high

National /
Jul.July 29, 2019 12:45 PM
(Credit: iStock)

(Credit: iStock)

The second quarter of the year saw $565 billion worth of mortgage loans as homeowners are increasingly eager to refinance thanks to falling rates.

If the lending keeps up at this pace, it could mark just the third year since the recession where originations exceed $2 trillion, according to the Wall Street Journal, citing data from Inside Mortgage Finance.

Large banks like JPMorgan, Wells Fargo and Citigroup all reported an increase in mortgage originations, and smaller independent lenders also did well.

About half of new mortgages were because of refinancings, and refinance applications rose by 43 percent in the second quarter compared to last year.

Meanwhile, the amount of people paying off their mortgages also increased, according to Zillow data. Over the past decade, homeowners finishing their payments went up by 5.5 percentage points, and now about 37 percent have no mortgage.

Overall, however, the housing market is still showing signs of slowing down thanks to prohibitively high prices, but lower rates also provided an opening for some people who had been trying to buy.

“I was so scared of being in a situation where I took on this house and then right away was having money worries,” recent homeowner Laura Poole told the Journal. “So for me my biggest focus when purchasing a house was the projected monthly payment.” [WSJ] — Eddie Small


Related Articles

arrow_forward_ios
(iStock)
Mortgage requests, refinancings continue to drop
Mortgage requests, refinancings continue to drop
Better CEO Vishal Garg and SoftBank CEO Masayoshi Son (Better.com, Getty)
Better.com lands $500M investment from SoftBank
Better.com lands $500M investment from SoftBank
An index tracking applications for mortgages to purchase homes decreased 5 percent. (iStock)
Frenzy ending? Mortgage requests fall 5%
Frenzy ending? Mortgage requests fall 5%
(iStock/Illustration by Kevin Rebong for The Real Deal)
March madness: Homes sold faster than ever last month
March madness: Homes sold faster than ever last month
February were 10.4 percent higher than last year. (iStock)
Home price growth hits 15-year high
Home price growth hits 15-year high
(iStock/Illustration by Kevin Rebong for The Real Deal)
Foreclosures and evictions could be halted for rest of 2021
Foreclosures and evictions could be halted for rest of 2021
CFPB acting director Dave Uejio (CFPB, iStock)
Mortgage lenders must prevent “tidal wave” of avoidable foreclosures: CFPB
Mortgage lenders must prevent “tidal wave” of avoidable foreclosures: CFPB
Overall, mortgage credit availability is at its lowest level since 2014. (iStock)
Mortgage lenders play hard-to-get
Mortgage lenders play hard-to-get
arrow_forward_ios

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

Loading...