Mortgage origination activity slowed in the first quarter compared with the fourth quarter of 2014, but showed improvement on a year-over-year basis, according to RealtyTrac's first-quarter loan origination report, released Thursday.
There were 1,551,865 loans originated on single-family homes and condos in the first quarter of 2015. That's a 6% decrease from the previous quarter but an increase of 17% from a year ago.
Total dollar volume of loans originated in the first quarter was $377 billion, down 1% from the previous quarter but up 32% from a year ago. Refinance originations represented 67.8% of the first-quarter total, with a dollar volume of nearly $256 billion. Purchase loan origination volume was $121 billion or 32.2% of the total.
By units, refinance originations totaled 1.1 million loans in the first quarter, an increase of 6% from the previous quarter and an increase of 27% from a year ago; 471,822 were purchase loan originations, down 25% from the previous quarter and up less than 1% from a year ago.
"A dip in interest rates early in the year combined with lowered mortgage insurance premiums for FHA loans breathed some life back into the refinancing market in the first quarter," said Daren Blomquist, vice president at RealtyTrac. "Meanwhile, the purchase loan market remained largely missing in action despite tepid growth from a year ago."
By loan type, there were 995,968 conventional loan originations (64% of the total), backed by Fannie Mae and Freddie Mac, in the first quarter. Conventional loan originations fell 5% from the previous quarter but rose 13% from a year ago, conventional purchase loan originations fell 27% from the previous quarter and 2% from a year ago, and conventional refinance originations rose 10% from the previous quarter and 21% from a year ago.
The 200,178 Federal Housing Administration loan originations accounted for 13% of the total. FHA loan originations rose 4% from the previous quarter and 18% from a year ago, FHA purchase loan originations fell 19% from the previous quarter but rose 5% from a year ago, and FHA refinance loan originations increased 34% from the previous quarter and 30% from a year ago.
The 99,555 Veteran Affairs-guaranteed loan originations (over 6.4% of the total) were down 5% from the previous quarter but increased 57% from a year ago. VA purchase loan originations fell 25% from the previous quarter but still rose 4% from a year ago, while VA refinance originations were up 12% from the previous quarter and increased 119% from a year ago.
The 238,359 home equity line of credit originations (over 15% of the total) was a drop of 17% from the previous quarter but an increase 32% from a year ago.
California, Florida and Massachusetts showed the biggest increases in loan originations. San Jose showed the biggest increase in loan originations year-over-year with 72%. San Diego's rose 64%; Oxnard-Thousand Oaks-Ventura, Calif., 64%; Palm Bay-Melbourne-Titusville, Fla., 61%; and Boston, 54%.
Salt Lake, San Francisco, Los Angeles, Denver, Seattle, Portland, Ore., Bridgeport, Conn., and Richmond, Va., were among other major markets with the top 20 year-over-year increases in loan originations.
Florida, Ohio and Missouri showed the biggest increases in purchase loan originations. The Palm Bay-Melbourne-Titusville metro area showed the biggest increase in purchase loan originations year-over-year with 72%. Dayton, Ohio's rose 62%; Toledo, Ohio's, 36%; Tampa, 32%; and Kansas City, 32%.
Salt Lake City, Atlanta, St. Louis, Miami, Phoenix and Jacksonville, Fla., were among other major markets with the top 20 year-over-year increases in purchase loan originations.
