#United States #Irvine #ATTOM #Q2 2025 #Mortgage Origination

U.S. Residential Mortgage Activity in Q2 2025

Overview

The latest report from ATTOM, known for its real estate analytics and property data, highlights a remarkable uptick in residential mortgage origination in the United States for the second quarter of 2025. This surge reflects a year-over-year increase of approximately 19.4%, resulting in 1.76 million mortgages being issued. The data reveals that while the market is recovering, underlying economic factors still pose challenges for borrowers.

Key Statistics

In terms of dollar volume, the total amount of mortgages reached $601.7 billion, which is a 22.8% rise from the first quarter of 2025. This growth is attributed to both refinancing and new purchase loans, underlining a trend where homeowners are taking advantage of marginally improved interest rates. Rob Barber, CEO of ATTOM, commented, “The increase in activity reflects some response to marginal rate improvements, but affordability issues continue to impact the market.”

Quarterly Trends

The second quarter typically sees a bounce in mortgage activity, and this year followed that pattern. In fact, total loan originations marked the first year-over-year growth for any second quarter since the pandemic boom of 2021. Notably, 201 out of 212 metropolitan statistical areas (MSAs) analyzed showed corresponding quarterly increases. Major gains were observed in cities like Indianapolis, IN, which experienced a 70.8% surge, and San Jose, CA, which recorded a notable uptick of 47.3%.

Conversely, there were declines in 11 of the 210 metros examined, with the worst drops in North Port-Sarasota, FL, and Myrtle Beach, FL.

Purchase and Refinance Loans

In terms of purchase lending, a little over 758,000 loans were initiated, reflecting a decline of about 5% from the previous year but an increase from Q1 2025, signaling a seasonal upswing. The major cities benefitting from this growth include Los Angeles, CA, with a 23.4% increase and Chicago, IL, witnessing a 28.1% rise.

On the refinancing side, 689,217 loans were issued in Q2, an increase of 16.4% and over 23.8% from the previous year. The overall refinance dollar volume also noted a significant rise, reaching $232.8 billion. Despite an increase in refinancing activity across 188 of the 212 studied areas, certain traditionally rate-sensitive markets, like Salt Lake City, UT, and Miami, FL, showed minimal shifts.

Home Equity Lines of Credit

Another interesting finding from ATTOM's report is the rise in home equity lending, which saw 307,046 originations—a 16.2% jump from Q1 2025. The dollar volume for HELOCs reached $59.9 billion, although their share fell slightly to 17.5% of total loans. Cities like Buffalo, NY, and Minneapolis, MN, displayed the largest increases in HELOC activity, marking upswings of 60.9% and 42.2%, respectively.

FHA and VA Lending

FHA and VA loan programs also saw some advancements, where FHA loans totaled 250,683, increasing both quarter-over-quarter and year-over-year. VA loans recorded 100,628, constituting 5.7% of the market. In contrast, there was a slight decrease in construction loans to 26,070—now accounting for just 1.5% of all mortgage originations.

Conclusion

The data from Q2 2025 demonstrates a recovering mortgage market, primarily driven by seasonal factors and slight rate improvements. However, substantial challenges remain, particularly concerning affordability and broader economic uncertainties. As this recovery trend unfolds, only time will tell if it can sustain momentum and fully stabilize the market.

About ATTOM

ATTOM specializes in collating and delivering premium property data that encompass over 158 million U.S. properties. This information plays a critical role across various sectors, including real estate and finance, ensuring that businesses make smarter decisions based on robust analytics.