According to the latest data of TransUnion, there is a total of 3.2% growth in mortgage balances touching 11.8 trillion. But mortgage originations fell down to 1.2 million from 1.9 million in the previous quarter.
In the third quarter, TransUnion’s latest data reveals a 3.2% rise in total mortgage balances, reaching $11.8 trillion, despite a significant 36.5% decline in mortgage originations. Following a slight dip in the second quarter, mortgage balances rebounded, while mortgage originations dropped from 1.9 million in Q2 to 1.2 million in Q3, resembling levels observed in the second quarter of 2014.
Year-over-year, there was a marginal 1% increase in tappable homeowner equity, reaching $19.7 trillion. Meanwhile, HELOC originations experienced a 28% decline from the previous year’s peak, and home equity loan originations decreased by 3% compared to a year ago. Additionally, mortgage account-level delinquencies rose by 15% year-over-year, marking the sixth consecutive quarter of such increases.
“Following a period of historically low account delinquencies, delinquencies have seen six consecutive quarters of year-over-year increases – inching them closer to pre-pandemic levels,”
according to Joe Mellman, the senior vice president & mortgage business leader at TransUnion.
“Delinquencies increased across all stages (early, mid and late) and all loan types. Vintage performance, which reflects the performance of an account in different periods after the loan was granted, shows deterioration in more recent originations. New mortgage vintages are performing worse than vintages of the past four years. In the midst of increasing non-mortgage debt and rising delinquencies across the board, the record levels of equity available to homeowners will remain a viable solution to ease debt pressures.”
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