TransUnion: First-Quarter Mortgage Origination Volumes Up Slightly

(Illustration courtesy of TransUnion)

First-quarter mortgage origination volumes increased by 2% year-over-year to 915,000, according to TransUnion, Chicago.

This represents the first year-over-year increase in originations since 2021, Transunion’s Q2 Credit Industry Insights Report said.

“After reaching two-decade highs in 2023, mortgage rates have moderated slightly over the first half of 2024, a likely factor in the modest originations gains,” said Satyan Merchant, senior vice president and mortgage business leader at TransUnion. “With a contracting monetary policy anticipated in the second half of 2024 due to easing inflationary pressure, mortgage rates are expected to decline further by the end of the year, which could further stimulate the mortgage market.”

Generationally, Gen Z saw an increasing share of mortgage originations, up from 12.4% in first-quarter 2023 to 14.9% in early 2024–the only generation to see a share increase over the period.

Purchase originations dipped 1% year-over-year, though they accounted for 84% of all originations in the first quarter.

Home equity originations were down 4% year-over-year to 472,000 in the first quarter. HELOC originations fell 7% from a year ago to 234,000, which marked the fifth consecutive quarter of year-over-year declines. HELOAN originations fell 1% year-over-year to 237,000.

Merchant noted delinquencies continued to trend upward in the second quarter, marking the ninth consecutive quarter of annual increases. “And [this] is a trend to continue to monitor in the coming quarters,” he said.