First and second mortgage originations have increased substantially in the first quarter of this year, according to a new report from credit reporting company Equifax.
Equifax's latest National Consumer Credit Trends Report shows total origination dollar volume rose 74.4% year-over-year, to $466 billion, in 2015's first quarter.
Year-over-year origination for first mortgages grew 79.9%, to $430 billion, driving the first quarter's mortgage origination expansion. By number of units, there was a nearly 55% increase in first mortgage originations, to 1.78 million, for the first three months of 2015 compared to the year before.
Originations of home equity lines of credit rose 30% to $30.9 billion and new home equity installment loans climbed 13.6% to $5 billion.
But subprime lending remained a small percentage of the mortgage business. Just 3.1% of the dollar volume produced in the first quarter went to borrowers with subprime credit scores. For the same time a year ago, the share was 3.5%.
"The drop in mortgage rates that began in the fourth quarter of last year kicked off a refinance boomlet that accelerated in the first quarter, as rates fell further, averaging just 3.7% for the first three months of this year," said Equifax chief economist Amy Crews Cutts in a release.
"While rates have recently reversed that trend and are back up to about 4%, they remain extremely low historically. These rates, coupled with a housing market that is showing signs of vigor, should carry the mortgage business over the summer."
