U.S. mortgage originations fell 2 percent in the third quarter, according to ATTOM’s Q3 2025 U.S. Residential Property Mortgage Origination Report.
ATTOM, a leading curator of land, property data, and real estate analytics, said its report showed 1.77 million mortgages secured by residential property (one to four units) were issued in the third quarter, marking a 1.6 percent decrease from the prior quarter but a 1.9 percent increase over the same period last year.
“Mortgage activity eased back a touch from the spring pickup, but it’s still running slightly ahead of last year,” ATTOM Chief Executive Officer Rob Barber said. “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.”
ATTOM said the $600.4 billion in total dollar volume was a 3.1 percent decrease from the second quarter but a 3.1 percent increase from the same time last year. It said that purchase loans fell quarter over quarter and year over year, while refinance loans and HELOCs moved higher on both a quarterly and annual basis.
Overall Lending Activity Falls Slightly
In total, 1,773,487 mortgage loans were originated in Q3, down 1.6 percent from 1,802,065 in Q2 but up 1.9 percent year over year. ATTOM said that mortgage activity rose quarterly in 98 of 209 U.S. metropolitan areas it analyzed.
The biggest quarterly gains among metros with populations over 1 million included Buffalo, New York (up 17.3 percent), Cleveland, Ohio (up 12 percent), New York, New York (up 10.2 percent), Philadelphia, Pennsylvania (up 8.1 percent), and Portland, Oregon (up 7.5 percent).
It said that 111 metro areas experienced quarterly declines in total lending, with the sharpest quarterly drops in Austin, Texas; Myrtle Beach, Florida; Rochester, New York; Waco, Texas, and Columbus, Georgia.
Purchase Mortgage Lending Cools in Q3
Purchase mortgage originations fell to 765,667 loans in Q3 2025 — down 4.8 percent from Q2 and down 6.6 percent from Q3 2024. Purchase loan dollar volume dropped to $309.6 billion, down 5.2 percent quarter over quarter and 3.3 percent year over year. Purchase loans accounted for 43.2 percent of all originations and 51.6 percent of total dollar volume, down from 44.6 percent and 52.7 percent in Q2 2025, ATTOM said.
Purchase mortgage lending declined quarter-over quarter in 67 percent of the 209 metros analyzed. Major markets with populations exceeding 1 million with the steepest quarterly drops included Austin (down 35.6 percent), Atlanta (down 25.8 percent), San Antonio (down 19.5 percent), Washington, D.C. (down 15.8 percent), and Dallas (down 15.7 percent).
The large metros with the strongest quarterly gains included Buffalo, New York; New York, New York; Rochester, New York; Cleveland, Ohio; and Philadelphia, Pennsylvania.
Refinance Lending Realizes Modest Growth
Refinance loan originations rose to 688,502 in Q3 2025, up 0.2 percent from Q2 and up 12 percent from Q3 2024. Refinance loan volume reached $229.7 billion, down 1.2 percent quarter over quarter but up 12.5 percent annually, ATTOM said. Refinances accounted for 38.8 percent of all loans and 38.3 percent of total dollar volume. Both were slightly above the previous quarter.
Refinance activity rose quarterly in 110 metros, led by the following metros with populations exceeding 1 million: Las Vegas, Nevada (up 32.9 percent), New Orleans, Louisiana (up 17.9 percent), Phoenix, Arizona (up 16.7 percent), Cleveland, Ohio (up 15.4 percent), and Honolulu, Hawaii (up 14.8 percent).
Home-Equity Lending Continues Rising
Home-equity line of credit (HELOC) lending rose to 319,318 loans in Q3 — up 2.8 percent from Q2 and up 4.6 percent from Q3 2024. HELOC dollar volume rose to $61.1 billion, up 0.7 percent quarter over quarter and 5.9 percent year over year. HELOCs comprised 18 percent of all mortgage originations and 10.2 percent of total dollar volume, compared to 17.2 percent and 9.8 percent in the previous quarter, according to ATTOM.
The largest quarterly HELOC increases among metro areas with populations above 1 million were in Portland, Oregon (up 27.6 percent), Virginia Beach, Virginia (up 24.3 percent), Richmond, Virginia (up 22.5 percent), Fresno, California (up 18.2 percent), and Birmingham, Alabama (up 17.6 percent).
ATTOM also reported that government-backed and construction mortgage lending declined slightly in Q3 as total origination volume eased. It said that FHA loans accounted for 14 percent of all loans, down from 14.9 percent in Q2. Veterans Administration (VA) loans represented 5.7 percent, down from 5.9 percent, while construction loans comprised 1.1 percent of total mortgage activity, compared with 1.5 percent the prior quarter.
ATTOM said that overall, its Q3 2025 mortgage data points to a housing finance market that is stabilizing but still constrained by affordability and rate pressures. It said that as interest rates and home prices continue to influence buyer sentiment, ATTOM’s latest figures suggest a cautious but steady lending environment heading into the year’s final quarter.
