Mortgage loans are shrinking at an unusually rapid rate in the United States
A new report from California-based Attom Data Solutions shows that US mortgages declined at an unusually rapid rate during the third quarter.
Atom current mortgage loan report shows that domestic loan applications fell 8% from the second quarter of 2021 – the largest quarterly decline in more than a year.
âThe quarterly decline was also the second in a row and indicated two unusual trends developing in the lending industry,â the Attom report said. âThis is the first time in more than two years that total loans have declined in two consecutive quarters. Most notably, this was the first time since at least 2000 that lending activity has declined in both the second and third quarters, which are typically peak buying periods. “
The year-over-year increase in the United States was 3%.
In Arkansas, there were 6,616 loan origins during the July-September period in the Northwest Arkansas metro. This is a quarterly decrease of 3.1% and a decrease of 8.9% compared to the third quarter of 2020.
In central Arkansas, there were 7,911 loan originations in the third quarter, a quarterly decline of 1.7% but an increase of 5.1% year-over-year. There were 2,217 loans in the third quarter in the Fort Smith metro. This is a quarterly decline of 3% and essentially stable from a year ago.
Overall, with average interest rates remaining below 3% for 30-year home loans, lenders issued mortgages worth $ 1.15 trillion in the third quarter of 2021. That increased by 11 % per year, but down 6% per quarter.