TransUnion: Mortgage Originations Up Amid Refinancing Activity

(Image courtesy of David Yu/Pexels.com)

TransUnion, Chicago, released its Q2 2026 Credit Industry Insights Report, finding consumer credit remains widely available despite economic uncertainty and credit usage continues to grow at a pace consistent with inflation.

Looking specifically at mortgages, originations rose 26% year-over-year in Q1 to 1.24 million (the latest data available), driven in large part by a rise in refinance activity. Purchase originations were up 5.8% year-over-year, and home equity originations grew by the same amount. HELOCs specifically propelled some growth–they were up by 16.8% year-over-year. HELOAN volumes declined.

The 60 days-past-due borrower-level mortgage delinquency rate hit 1.56% in Q2, up 29 basis points year-over-year, with FHA loans accounting for nearly half of the delinquent loans in that bucket.

The total balance of all mortgage loans in Q2 is $12.9 trillion, up from $12.6 trillion a year earlier, and the average balance per consumer is $272,628, up from $265,597 in Q2 2025.

“The mortgage market continues to show resilience, supported by refinancing activity and steady homebuying demand among younger consumers. Affordability remains a challenge for many households, particularly in more financially vulnerable segments, and delinquency trends warrant continued attention,” said Satyan Merchant, senior vice president, automotive and mortgage business leader, TransUnion. “As market conditions evolve, lenders that can effectively balance growth opportunities with disciplined risk management and a strong understanding of borrower needs will be best positioned for long-term success.”

Zooming out, consumer access to credit continued to expand in Q2, and total outstanding balances also grew steadily.

That doesn’t necessarily point to great portfolio risk, TransUnion cautioned. Borrower-level credit card delinquency rates are up slightly year-over-year, but balance-level delinquency rates were near flat.

Average non-mortgage minimum payments have been fairly controlled across all credit risk tiers, up between 1-3% year-over-year except for the prime tier, which was up 3.5%.

“While affordability pressures continue to weigh on many households, consumers appear to be managing credit obligations with relative discipline, as evidenced by modest growth in non-mortgage minimum payments and generally stable balance-level delinquency rates,” said Michele Raneri, vice president and head of U.S. research and consulting at TransUnion. “Although some consumers may be experiencing financial challenges, the broader credit picture suggests that balance growth has generally remained aligned with consumers’ ability to service their debt.”