Home purchase lending falls 19 percent quarter-over-quarter to 581,261 loans; Total residential mortgage originations decline 13 percent to 1.57 million
ATTOM, the leading provider of property data, AI-powered intelligence, and real estate analytics solutions, released its U.S. Residential Property Mortgage Origination Report for the first quarter of 2026, showing overall lending activity slowed as elevated home prices and rising mortgage rates continued to pressure buyers.
A total of 1.57 million mortgages secured by residential property (1 to 4 units) were originated in the first quarter, down 13 percent from the previous quarter but still up 5 percent from a year earlier. Total loan volume reached $577.7 billion, down 12 percent quarterly and up 15 percent year-over-year.
The slowdown was driven largely by a decline in home purchase lending. Purchase loans fell 19 percent from the previous quarter to 581,261, marking the lowest quarterly total since the first quarter of 2014.
“Purchase, refinancing and home-equity lending all posted declines from the previous quarter, continuing a seasonal trend we’ve seen during the start of the year over the past four years,” said Rob Barber, CEO of ATTOM. “However, purchase activity stood out with home-buying loans falling to a 12-year low, as elevated home prices and higher mortgage rates continued to strain affordability for many buyers.”
Overall lending slows across most markets
Total residential lending declined quarter-over-quarter in 96.5 percent of the 200 metropolitan statistical areas analyzed by ATTOM. Among metro areas with populations above 1 million, the largest declines were in St. Louis, MO; Rochester, NY; Pittsburgh, PA; Atlanta, GA; and Detroit, MI.
Purchase lending sees broad pullback
Purchase lending totaled $236.8 billion in the first quarter, down 18 percent from the previous quarter and 8 percent below year-ago levels. Purchase loans accounted for 37 percent of all residential mortgage originations, down from 40 percent in the fourth quarter and 44 percent a year earlier.
Purchase activity declined in 99 percent of analyzed metro areas. The only metros where it did not fall were Yuma, AZ (up 28.6 percent) and Tucson, AZ (up 5.9 percent). The steepest quarterly drops among large metros were in St. Louis, MO; Rochester, NY; Honolulu, HI; Boston, MA; and Pittsburgh, PA.
Refinancing and HELOC activity also decline
Refinancing activity fell 7 percent quarter-over-quarter to 715,818 loans, although volumes remained 24 percent above the first quarter of 2025. Refinance originations accounted for 45.6 percent of all residential loans, up from 42.7 percent the previous quarter.
HELOC lending also slowed, with 272,156 loans originated during the quarter, down 12 percent from the prior quarter but up 4 percent year-over-year. HELOCs represented 17.3 percent of all residential lending activity, the same rate as the previous quarter.
FHA loan share falls to five-year low
Loans backed by the Federal Housing Administration accounted for 9.6 percent of all residential originations in the first quarter, the lowest share in nearly five years. VA-backed loans represented 7.4 percent of originations, unchanged from the previous quarter, while construction loans accounted for 1.2 percent of all lending activity.
Mortgage rates rise in first quarter
Mortgage rates trended higher toward the end of the quarter. According to Freddie Mac, the average rate on a 30-year fixed mortgage rose from 6.15 percent at the start of 2026 to 6.46 percent by early April, adding additional pressure to an already constrained housing market.
Loan Origination Report key takeaways
According to the Q1 2026 Loan Origination Report, residential mortgage lending slowed in the first quarter of 2026, with total originations falling 13 percent from the previous quarter to 1.57 million loans as elevated home prices and rising mortgage rates continued to pressure affordability. Home purchase lending saw the sharpest pullback, dropping 19 percent to 581,261 loans, the lowest quarterly level in 12 years.
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