Mortgage production fell by 1.6% in the third quarter of 2025
Total new dollar volume was $600.4 billion, down 3.1% from $619.7 billion in the second quarter of 2025, but up 3.1% from the third quarter of 2024. Purchase loans declined both quarterly and year-over-year, while refinancing and home loans posted modest gains in both periods.
“Mortgage activity has slowed slightly since the spring rebound, but is still slightly higher than last year,” said Rob Barber, CEO of ATTOM. “The modest increase in refinancing and HELOC activity suggests that some homeowners are benefiting from small rate improvements and tapping into equity, while purchasing activity remains limited by affordability.
“All told, the third quarter looks like a market treading water rather than turning a corner.”
Mortgage activity increased quarter over quarter in 98 of the 209 metropolitan areas analyzed. Among metro areas with at least 1 million residents, the biggest gains were in Buffalo, New York (up 17.3%); Cleveland (+12%); New York City (+10.2%); Philadelphia (+8.1%); and Portland, Oregon (+7.5%).
Meanwhile, new purchase loans fell to 765,667 in the third quarter, down 4.8% from the second quarter and 6.6% from the third quarter of 2024. Dollar volume of purchase loans fell to $309.6 billion, down 5.2% from the previous quarter and 3.3% year over year. ATTOM found that purchase loans represented 43.2% of all new loans and 51.6% of total volume, compared to 44.6% and 52.7% respectively in the second quarter.
The number of refinancing transactions increased to 688,502, up 0.2% from the second quarter and 12% from the third quarter of 2024. Refinancing volume decreased 1.2% quarter-over-quarter but increased 12.5% year-over-year to $229.7 billion.
Refinancings accounted for 38.8% of all loans and 38.3% of total loan dollars, up slightly from the previous quarter.
HELOCs are increasing, FHA/VA loans are decreasing
The number of new Home Equity Line of Credit (HELOC) loans rose to 319,318 loans, up 2.8% quarter-over-quarter and 4.6% year-over-year. HELOC dollar volume increased to $61.1 billion, up 0.7% from Q2 and 5.9% from Q3 2024.
HELOCs represented 18% of all mortgages and 10.2% of total dollar volume in the third quarter, compared to 17.2% and 9.8%, respectively, in the second quarter.
Government-backed loans and construction loans fell slightly in the third quarter. Federal Housing Administration loans accounted for 14% of all new loans, up from 14.9% in the second quarter. The U.S. Department of Veterans Affairs loans were 5.7%, down from 5.9%, while construction loans fell to 1.1% of all mortgage activity, compared to 1.5% in the second quarter.
