Purchase loan mortgage originations in the fourth quarter of 2022 amounted to 332 billion U.S. dollars and refinance loan mortgage originations amounted to 66 billion U.S. dollars. Due to the low interest rates, refinance mortgages spiked in the second half of 2020, but went down as as borrowing costs increased.
Purchase vs refinance loans
A purchase loan is the classic type of mortgage which describes the process by which a home buyer borrows money from a mortgage lender. On the other hand, a refinance loan is obtained by homeowners to replace their existing mortgage with a new loan, which usually reduces the monthly payments, the interest rate or changes it to a fixed rate mortgage.
Why the trend has changed
The value of refinance loans had been falling since mid-2013, because the Federal Reserve had been continuously increasing the interest rate since 2014. However, the Fed dropped the funds rate three times in 2019 in response to the inverted yield curve in March, which accounts for the increase throughout 2019.
Mortgage originations on one-to-four family properties in the United States from 1st quarter 2012 to 4th quarter 2022, with a forecast until 2024
(in billion U.S. dollars)
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Mortgage Bankers Association. (April 18, 2023). Mortgage originations on one-to-four family properties in the United States from 1st quarter 2012 to 4th quarter 2022, with a forecast until 2024 (in billion U.S. dollars) [Graph]. In Statista. Retrieved September 01, 2024, from https://www.statista.com/statistics/275722/mortgage-originations-in-the-united-states/
Mortgage Bankers Association. "Mortgage originations on one-to-four family properties in the United States from 1st quarter 2012 to 4th quarter 2022, with a forecast until 2024 (in billion U.S. dollars)." Chart. April 18, 2023. Statista. Accessed September 01, 2024. https://www.statista.com/statistics/275722/mortgage-originations-in-the-united-states/
Mortgage Bankers Association. (2023). Mortgage originations on one-to-four family properties in the United States from 1st quarter 2012 to 4th quarter 2022, with a forecast until 2024 (in billion U.S. dollars). Statista. Statista Inc.. Accessed: September 01, 2024. https://www.statista.com/statistics/275722/mortgage-originations-in-the-united-states/
Mortgage Bankers Association. "Mortgage Originations on One-to-four Family Properties in The United States from 1st Quarter 2012 to 4th Quarter 2022, with a Forecast until 2024 (in Billion U.S. Dollars)." Statista, Statista Inc., 18 Apr 2023, https://www.statista.com/statistics/275722/mortgage-originations-in-the-united-states/
Mortgage Bankers Association, Mortgage originations on one-to-four family properties in the United States from 1st quarter 2012 to 4th quarter 2022, with a forecast until 2024 (in billion U.S. dollars) Statista, https://www.statista.com/statistics/275722/mortgage-originations-in-the-united-states/ (last visited September 01, 2024)
Mortgage originations on one-to-four family properties in the United States from 1st quarter 2012 to 4th quarter 2022, with a forecast until 2024 (in billion U.S. dollars) [Graph], Mortgage Bankers Association, April 18, 2023. [Online]. Available: https://www.statista.com/statistics/275722/mortgage-originations-in-the-united-states/