Q3 Mortgage Origination Activity Grows YoY
Refi and HELOC activity inched upward in Q3, as homeowners capitalized on modest rate improvements and tapped into equity, but affordability constraints are still keeping purchase demand subdued
According to ATTOM’s Q3 U.S. Residential Property Mortgage Origination Report, approximately 1.77 million mortgages secured by residential properties (one to four units) were issued in the third quarter of 2025 一 a 1.6% decrease from the prior quarter, but a 1.9% increase year-over-year.
The $600.4 billion in total dollar volume represented a 3.1% decrease from Q2 2025, but a 3.1% increase from the same time last year. Purchase loans declined both quarter-over-quarter and year-over-year, while refinance loans and HELOCs edged higher on both a quarterly and annual basis.
“Mortgage activity eased back a touch from the spring pickup, but it’s still running slightly ahead of last year,” said Rob Barber, CEO at ATTOM. “The modest lift in refinance and HELOC activity suggests some homeowners are taking advantage of small rate improvements and tapping equity, while purchase activity remains constrained by affordability. Taken together, Q3 looks like a market treading water rather than turning a corner.”
Overall Lending Slips
In total, 1,773,487 loans were originated in Q3 2025, down 1.6% from 1,802,065 in Q2 2025, but up 1.9% year-over-year. The $600.4 billion reported in mortgage lending volume was down 3.1% quarter-over-quarter and up 3.1% annually.
Mortgage activity increased quarterly in 98 of 209 U.S. metropolitan areas analyzed, with the biggest quarterly gains among large metros with populations exceeding one million reported in:
- Buffalo, New York (up 17.3%)
- Cleveland, Ohio (up 12%)
- New York, New York (up 10.2%)
- Philadelphia, Pennsylvania (up 8.1%)
- Portland, Oregon (up 7.5%)
At the same time, 111 metros saw quarterly declines in total lending, with the sharpest quarterly drops reported in:
- Austin, Texas
- Myrtle Beach, South Carolina
- Rochester, New York
- Waco, Texas
- Columbus, Georgia
A Slowdown in Purchase Mortgages
Purchase mortgage originations fell to 765,667 loans in Q3 2025 — down 4.8% from Q2 and down 6.6% from Q3 2024. Purchase loan dollar volume dropped to $309.6 billion, down 5.2% quarter-over-quarter and 3.3% year-over-year.
Purchase loans accounted for 43.2% of all originations and 51.6% of total dollar volume, down from 44.6% and 52.7% in Q2 2025.
Purchase mortgage lending declined quarter-over-quarter in 67 percent of the 209 metros analyzed. Major markets with populations exceeding one million reporting the steepest quarterly drops included:
- Austin, Texas (down 35.6%)
- Atlanta, Georgia (down 25.8%)
- San Antonio, Texas (down 19.5%)
- Washington, D.C. (down 15.8%)
- Dallas, Texas (down 15.7%)
Those large metros reporting the strongest quarterly gains in Q3 were concentrated in The Empire State, and included:
- Buffalo, New York
- New York, New York
- Rochester, New York
- Cleveland, Ohio
- Philadelphia, Pennsylvania
Refis Grow Modestly
Refinance loan originations edged up to 688,502 in Q3 2025, up 0.2% from Q2. and up 12% from Q3 2024. Refinance loan volume reached $229.7 billion, down 1.2% quarter-over-quarter, but up 12.5% annually. Refis accounted for 38.8% of all loans and 38.3% of total dollar volume, both slightly higher than in the previous quarter.
Refi activity rose quarterly in 110 metros, led by the following metros with populations exceeding one million:
- Las Vegas, Nevada (up 32.9%)
- New Orleans, Louisiana (up 17.9%)
- Phoenix, Arizona (up 16.7%)
- Cleveland, Ohio (up 15.4%)
- Honolulu, Hawaii (up 14.8%)
HELOCs Show Strength in Q3
Home-equity lines of credit (HELOCs) increased to 319,318 loans in Q3 2025 — up 2.8% from Q2 2025 and up 4.6% from Q3 2024. HELOC dollar volume rose to $61.1 billion, up 0.7% quarter-over-quarter and 5.9% year-over-year.
HELOCs comprised 18% of all mortgage originations, and 10.2% of total dollar volume, compared to 17.2% and 9.8% respectively in Q2.
The largest quarterly HELOC increases among metros with populations in excess of one million were recorded in:
- Portland, Oregon (up 27.6%)
- Virginia Beach, Virginia (up 24.3%)
- Richmond, Virginia (up 22.5%)
- Fresno, California (up 18.2%)
- Birmingham, Alabama (up 17.6%)
FHA, VA, and Construction Lending Fall Slightly
Government-backed and construction mortgage lending declined slightly in Q3 2025, as total origination volume eased. FHA loans accounted for 14.0% of all loans, down from 14.9% in Q2 2025. Veterans Administration (VA) loans represented 5.7%, down slightly from 5.9%, while the share of construction loans stood at 1.1% of total mortgage activity, compared to 1.5% the prior quarter.