Pointing to a slowdown, fewer new home loans come from D-FW, across the United States

Here’s another sign that the housing market is slowing: the number of new home loans in Dallas-Fort Worth and across the country is down.

New home loan originations in the United States fell in the third quarter, the second consecutive such decline.

“It was the first time in more than two years that total loans declined in two consecutive quarters,” analysts at Attom Data Solutions reported. “Most notably, it was the first time in a year since at least 2000 that lending activity declined in the second and third quarters, which are typically peak buying seasons.”

In the D-FW area, the number of home loans originated in the third quarter was down more than 25% from a year ago.

Home buying mortgages and refinances declined. Attom Data Solutions registered 24,606 home purchase loans, compared to 41,029 mortgage loans for the purchase of local properties in the third quarter of 2020.

“Dallas appears to be on the downward trend in purchase loans since last year,” an Atom Data spokesperson said in an email.

The slowdown in home lending activity in the region matches the recent decline in used home purchases in North Texas.

Also, more migrants in the region and real estate investors are paying for their purchases in cash instead of taking out mortgages.

Sales of North Texas single-family homes by real estate agents have declined year over year in each of the past four months. And total home sales for the area for this entire year are down slightly from the first 10 months of 2020.

Lenders nationwide made $1.15 trillion worth of mortgages in the third quarter of 2021, 11% more than a year earlier but 6% less than the second quarter, according to Attom Data Solutions.

The biggest declines in home mortgage activity were for refinances, which still account for more than half of lending volumes nationally.

“It increasingly appears that homeowners’ voracious appetite for refinance deals has waned significantly, while purchase loans have also fallen,” Atom Data’s Todd Teta said in the new report. . “It is still too early to tell whether the trends point to major shifts in lending patterns or the broader housing market boom.

“But the decline is significant, particularly for home buying, which could suggest an impending downturn in the housing market.”

Home lending activity fell in the third quarter in more than 85% of Attom Data surveys of U.S. metro areas.

The number of home loans fell in all major markets in Texas. Austin saw the biggest decline from a year ago, with the number of new mortgages falling more than 30% in the third quarter.

Mortgage activity in Houston was down 21% and in San Antonio there were about 10% fewer home loans than in the third quarter of 2020.

While the number of mortgages in the country has declined, the total value of mortgages issued this year has continued to rise due to the sharp increase in house prices.

Home costs in the Dallas area are up 25% from a year ago in the latest S&P CoreLogic Case-Shiller Home Price Index.

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