Second-quarter residential origination volume reached its highest level since the second quarter of 2013, according to the July edition of the Mortgage Monitor Report, produced by the Data & Analytics division of Black Knight Financial Services Inc. (BKFS), Jacksonville, Florida. The industry produced $518 billion in first-lien mortgage originations during the quarter.
Purchase volume in the quarter hit $297 billion, which was the highest dollar amount since 2007, according to BKFS. Refinance origination volume has risen for three straight quarters but remains below 2015 levels year-to-date.
The company said that the largest growth in origination volume was seen among borrowers with moderate credit quality (credit scores from 700 to 739).
Black Knight Data & Analytics Executive Vice President Ben Graboske said that despite the strong overall showing, refinance volume was not as strong as current low rates might suggest.
He said, "While purchase originations jumped more than 50 percent from Q1, refinances saw only an 8 percent increase over that period and were actually down from the same time last year, despite the number of potential refinance candidates outpacing 2015 by over 1 million in every month since March. That said, refinance lending has risen for three consecutive quarters and accounted for $221 billion in originations in Q2."
The report measured...