U.S. Mortgage Originations Surge by 19% in Q2 2025
Remarkable Increase in U.S. Mortgage Lending
IRVINE, Calif., Aug. 28, 2025 /PRNewswire/ — The latest report from ATTOM, a leading authority on land and property data, indicates a significant surge in mortgage originations across the United States during the second quarter of 2025. The data reveals that 1.76 million mortgages were issued, reflecting a 19.4% increase from Q1 2025 and a 6.3% rise from the same period in 2024.
Financial Insights: Dollar Volume Growth
The total dollar volume associated with these mortgages reached an impressive $601.7 billion, marking a 22.8% increase from the previous quarter and a 10.3% year-over-year rise. Both purchase lending and refinance loans contributed to this positive trend, while home-equity lines of credit (HELOCs) also experienced a boost.
Seasonal Trends vs. Market Recovery
Although lending activities saw notable gains, they remain below the peak levels experienced during the pandemic. The quarterly improvements can primarily be attributed to seasonal momentum and temporary dips in interest rates rather than a widespread recovery in the housing market. Refinance lending showed encouraging signs as homeowners sought to adjust their mortgage terms amidst slightly improved rates.
Commentary from Industry Experts
Rob Barber, CEO of ATTOM, commented on the landscape of mortgage activity: “Mortgage activity perked up a bit in the second quarter, but it’s not a clear signal that the market has turned a corner. The increase in purchase and refinance activity reflects some buyer and homeowner response to marginal rate improvements, but underlying affordability and economic uncertainty continue to hold the market in check.”
Overview of Lending Activity
Total Loan Originations on the Rise
The quarterly rebound brings the total number of loan originations in Q2 2025 to approximately 1.76 million, marking the first year-over-year increase for any second quarter since the pandemic boom in 2021. While the overall lending market appears to be stabilizing, substantial gains were recorded in 201 of the 212 metropolitan statistical areas analyzed. Noteworthy increases were found in:
- Indianapolis, IN: Up 70.8%
- San Jose, CA: Up 47.3%
- Rochester, NY: Up 43.8%
- Boston, MA: Up 38.0%
- Buffalo, NY: Up 35.2%
However, only 11 of the 210 metros analyzed experienced a decline, with the steepest drops reported in North Port-Sarasota, FL, and Myrtle Beach, FL.
Purchase Lending Declines Slightly
Despite overall growth, purchase loan activity faced a decline, with just over 758,000 loans initiated, reflecting a 5% drop compared to the same time last year. However, it showed improvement from the previous quarter, indicating a seasonal resurgence across 97% of metro areas. Major cities like:
- Los Angeles, CA: Up 23.4%
- Chicago, IL: Up 28.1%
- Houston, TX: Up 17.6%
- Washington, DC: Up 35.4%
Refinance Lending Soars
Refinancing took a leap in Q2, with 689,217 loans issued — an increase of 16.4% from the previous quarter and 23.8% compared to last year. The refinance dollar volume added to this growth, rising 18.5% to $232.8 billion. Nevertheless, the share of refinance loans dipped slightly, comprising 39.3% of all originations.
Home Equity Lending Gains Focus
Home equity lending also saw a boost with 307,046 originations, marking a 16.2% rise from the preceding quarter and a 4.7% increase year-over-year. HELOC dollar volume also increased, reaching $59.9 billion, although its share of total loans slightly declined to 17.5%.
FHA and VA Lending Trends
FHA lending rose to 250,683 loans, accounting for 14.3% of total loans, while VA lending reached 100,628 loans, representing 5.7% of the market. Conversely, construction loan activity dipped to 26,070 loans, now constituting only 1.5% of all originations.
Conclusion
The Q2 report from ATTOM encapsulates a dynamic and evolving mortgage landscape in the U.S., characterized by a spring uptick in lending activity. While the improvements are promising, ongoing economic uncertainty and affordability issues suggest that the market has yet to embark on a robust recovery. Stakeholders and homeowners alike will be watching closely as these trends develop in the coming months.
About ATTOM
ATTOM provides comprehensive property data and analytics covering 158 million U.S. properties, with a rigorous validation process. They offer flexible delivery solutions aimed at empowering smarter decision-making across sectors, including real estate and finance.
For further inquiries, contact:
Megan Hunt
megan.hunt@attomdata.com
(949) 502-8313
Source: ATTOM
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