Mortgage lending activity sees ‘typical spring bounce’

Mortgage lending increased in the second quarter 2025, with nearly 1.76 million residential loans issued nationwide, according to ATTOM’s quarterly mortgage origination report.

It was the first time since 2021 that the second quarter saw an annualized increase.

The total number from April through June marked a 19.4% rise from the first quarter and a 6.3% gain from the same period last year. And the $601.7 billion in total loan volume rose 22.8% from the prior quarter and 10.3% year over year.

ATTOM CEO Rob Barber said the market improvement was noteworthy but limited.

“Mortgage activity perked up a bit in the second quarter, but it’s not a clear signal that the market has turned a corner,” he said. “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. This was a typical spring bounce, not yet a breakout.”

Mortgage activity rose in 201 of 212 metropolitan areas analyzed by ATTOM.

Indianapolis recorded the largest quarterly increase among major metro areas, up 70.8%. San Jose; Rochester, New York; Boston; and Buffalo, New York also posted large gains. Conversely, North Port-Sarasota, Florida; and Myrtle Beach, South Carolina, saw the sharpest declines.

Purchase lending posts modest growth

Purchase loans totaled just over 758,000 in the second quarter — a 5% decline from the same period last year but an increase from the first quarter.

Loan growth was widespread, rising in 97% of metro areas. Major metros with notable increases included Washington, D.C. (+35.4%), Chicago (+28.1%), Los Angeles (+23.4%) and Houston (+17.6%).

New York was one of the few large metros to see a quarterly decline, down 4.7%.

Refinance activity jumps

Refinance lending rose to 689,217 loans during the second quarter, a 16.4% increase from the first quarter and 23.8% higher than the same period in 2024.

Refinancing accounted for 39.3% of all originations — down slightly from the 40.3% share in the first quarter.

Boston led large metro areas with a 91.6% surge in refinance activity. Rochester, New York; San Jose; Providence, Rhode Island; and Hartford, Connecticut, also posted strong gains. By contrast, Salt Lake City and Miami saw little or no increases.

Other lending categories

Borrowers also increased their use of home equity lines of credit (HELOCs).

HELOCs rose to 307,046 originations, up 16.2% from the first quarter and 4.7% higher year over year. The dollar volume of HELOCs rose to $59.9 billion, although they accounted for 17.5% of all loans, a slight decline in market share.

The largest increases in home equity lending occurred in Buffalo; Minneapolis; Tulsa, Oklahoma; San Jose; and Grand Rapids, Michigan.

Federal Housing Administration (FHA) loans increased to 250,683, representing 14.3% of all originations. U.S. Department of Veterans Affairs (VA) loans rose to 100,628, good for 5.7% of the market. up

Construction loans declined slightly to 26,070, accounting for 1.5% of all originations.