With mortgage rates continuing to hover near record lows, the rate at which new mortgages are originating is experiencing a surge not seen since 2007’s housing boom. ATTOM Data Solutions released its third-quarter 2020 U.S. Residential Property Mortgage Origination Report last week which showed 3.25 million new mortgages in Q3 2020. This is up 17 percent from the prior quarter and 45 percent higher than a year ago.
The new mortgage loans taken out during the last quarter represent a total of $974.1 billion. This is the highest dollar value in a single three-month period since 2005.
Refinances continue to make up the majority of new home loans as low mortgage rates entice homeowners to lock in a smaller monthly payment. Today, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.375 percent.
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