The first quarter of this year saw a health level of positive mortgage activity, according to new data released by Equifax.
Between New Year’s Day and March 31, there were 1.86 million new first mortgages, a year-over-year increase of 10.3 percent. The total dollar amount of first mortgage originations the first quarter totaled $450.5 billion, a year-over-year increase of 12.3 percent and the highest amount for a first quarter total since 2013. The total balance of new mortgages originated for borrowers with subprime credit scores $16.2 billion, up 38.7 percent from a year earlier.
The first quarter also saw 182,400 new home equity installment loans, a year-over-year spike of 23.5 percent and the highest level of activity for this product during a first quarter since 2008. The total origination balance on all loans in this category was $5.87 billion, an increase of 14.1 percent.
There were also 314,400 new home equity lines of credit, a 10.2 percent year-over-year increase. The total credit limits of new loans originated in this sector was $35.2 billion, up 14 percent from last year and an eight-year high.
"The first quarter of 2016 was a strong one for mortgage lending and underwriting practices appear to have maintained their rigor over the last three years." said Amy Crews Cutts, chief economist for Equifax. "We anticipate that the second quarter of 2016 will maintain this trend. And later this year, the much-anticipated addition of trended credit data to the mortgage underwriting process will help to strengthen the marketplace further by helping to statistically separate lower risk borrowers from those presenting higher risk."
