A recent TransUnion report suggests that U.S. mortgage originations are poised for moderate growth in 2025, projected to hit 5.7 million, up from about 4.6 million in 2024. This increase is driven mainly by purchase loans, with heightened refinancing activity also evident despite elevated interest rates. The report notes that homeowners are capitalizing on the lowest interest rates in two years, with significant increases in rate and term refinance originations. However, rising non-mortgage debt could pose future financial challenges, particularly for FHA borrowers, amid growing delinquencies.
It's been a long time since the industry has been in a higher interest rate environment like this, he said.
Even in 2024, despite higher interest rates, we saw some amount of refinance activity, and that will continue in 2025.
Homeowners who secured mortgages at higher rates in previous quarters have increasingly taken advantage of the lowest interest rates in two years.
Rising non-mortgage debt among homeownersup 7% year-over-yearcould create financial strain in the coming quarters.
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