TransUnion: Mortgage Originations, Delinquencies Both Rise

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TransUnion, Chicago, released its Q3 Credit Industry Insights Report, finding that mortgage originations grew 8.8% year-over-year in Q2.

The growth was mainly driven by growth in rate-and-term refinances, which were up 101% year-over-year in the quarter. Cash-out refinances were up 23%.

The home equity market saw year-over-year growth for the fifth consecutive quarter, up 14% in Q2.

Mortgage delinquencies rose slightly in the third quarter. Mortgages in the 60 days-past-due category increased to 1.36%, up from 1.24% one year ago.

“The housing finance landscape continues to evolve, shaped by shifting demographics and an increasingly dynamic monetary policy environment. As interest rates begin to ease, mortgage activity is showing signs of recovery, supported by improving affordability conditions,” said Satyan Merchant, senior vice president, automotive and mortgage business leader at TransUnion. “We remain closely attuned to the potential for further rate reductions should the Federal Reserve proceed with additional cuts. At the same time, rising delinquency rates–particularly within certain borrower segments–underscore the importance of maintaining a vigilant and proactive approach to risk monitoring and portfolio management.”

Credit card origination volumes increased for the third consecutive quarter, up 9% year-over-year to 20.5 million in Q2. Average new account credit lines decreased by 1.6% year-over-year and consumer-level delinquencies saw another year-over-year declined, with 90-plus days-past-due rates falling to 2.37%. That’s down 7 basis point year-over-year.

Unsecured personal loans hit 6.9 million in Q2, up 26% year-over-year. Balances also increased, reaching $269 billion in Q3, an 8% year-over-year increase and the largest since Q1 2024. Delinquency rates were near flat in Q3.

And, auto loan originations rose 5.2% year-over-year to 6.7 million in Q3. The percentage of accounts 60-plus days-past-due rose to 1.45% in Q3, up four basis points year-over-year.