Residential mortgage lending activity took another downturn in the fourth quarter of 2023, with more than 90% of metro areas reporting declines, according to the latest report from ATTOM. The slump marks the 10th decline in the past 11 quarters, with total lending volume falling 16.5% year-over-year.
The year proved challenging for lenders as elevated home prices, rising mortgage rates, and limited inventory continued to suppress buyer demand. With a total of 1,346,479 residential mortgages issued in the fourth quarter, lending activity continued to decline in the 184 metropolitan areas (96%) analyzed,
Lending activity for residential properties saw a 16.5% fall year-over-year and a dramatic 67.7% drop from the early 2021 peak. The decline spanned across all key types of residential lending: purchase loans, refinance deals, and home-equity lines of credit, all taking hits in the fourth quarter. Purchase loan activity fell by 18.4%, refinances by 7.9%, and home equity lines of credit by 12.7%.
Source: mpamag.com