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As more people tap home equity, refinancing declines
Home equity lines of credit were up considerably in the U.S. in the first quarter of 2018, while overall residential purchase and refinance loans declined in volume compared with the previous quarter, a report issued last week by Irvine, Calif.-based ATTOM Data Solutions shows.
Overall, 1.8 million loans were secured by residential property with one to four living units, including purchases, refinances, and HELOCs, down 5 percent compared with loans originated in the fourth quarter of 2017, and down 3 percent compared with the first quarter of 2017.
In a breakdown of purchases, refinances and HELOCs:
*Nearly 348,000 HELOCs were originated on residential properties in Ql 2018, up 18 percent from the previous quarter and up 14 percent from the year-earlier quarter.
*About 800,000 of the residential loans originated in Ql 2018 were refinance loans, down 2 percent from the previous quarter and down 11 percent the year-earlier quarter.
*Nearly 666,000 of the residential loans originated in Ql 2018 were purchase loans, down 16 percent from the previous quarter but still up 2 percent from the year-earlier quarter.
Among 165 metropolitan statistical areas analyzed for loan originations, those with the biggest year-over-year increase in HELOC originations in Ql 2018 were Athens, Ga. (up 176 percent); Chattanooga, Tenn. (up 165 percent); Norwich, Conn, (up 99...