Residential mortgage originations declined in the first quarter of 2026, with home-purchase lending falling to its lowest level in more than a decade as elevated home prices and rising borrowing costs continued to constrain affordability, according to new data released by ATTOM.
A total of 1.57 million mortgages secured by one- to four-unit residential properties were originated during the quarter, down 13% from the previous three months but up 5% from a year earlier. Total loan volume reached $577.7 billion, a 12% quarterly decline and a 15% increase year over year.
The sharpest weakness came from the purchase market. Home-purchase loans fell 19% from the fourth quarter to 581,261, the lowest quarterly total since the first quarter of 2014. Purchase lending volume totaled $236.8 billion, down 18% from the prior quarter and 8% below year-earlier levels.
“Purchase activity stood out with home-buying loans falling to a 12-year low, as elevated home prices and higher mortgage rates continued to strain affordability for many buyers,” ATTOM Chief Executive Officer Rob Barber said.
Purchase loans accounted for 37% of all residential mortgage originations during the quarter, down from 40% in the fourth quarter and 44% a year earlier, underscoring the growing challenges facing prospective buyers.
The slowdown was widespread. ATTOM found total residential lending declined from the prior quarter in 96.5% of the 200 metropolitan statistical areas analyzed. Among metro areas with populations exceeding one million, the largest declines occurred in St. Louis, Rochester, Pittsburgh, Atlanta, and Detroit.
Purchase lending fell in 99% of analyzed markets. Tucson, Arizona, and Yuma, Arizona, were the only metro areas to post quarterly gains.
Refinancing activity also softened, though it remained above year-ago levels. Refinance originations declined 7% from the previous quarter to 715,818 loans, while remaining 24% higher than in the first quarter of 2025. Refinances represented 45.6% of all residential lending activity, up from 42.7% in the prior quarter.
Home-equity lines of credit, or HELOCs, totaled 272,156 originations, down 12% quarter over quarter but up 4% from a year earlier. HELOCs accounted for 17.3% of all residential lending activity.
Government-backed lending also weakened. Federal Housing Administration-backed mortgages represented 9.6% of all residential loan originations during the quarter, the lowest share in nearly five years. Loans guaranteed by the Department of Veterans Affairs accounted for 7.4% of originations, unchanged from the prior quarter, while construction loans represented 1.2% of activity.
Higher financing costs added further pressure to the housing market. According to Freddie Mac data cited by ATTOM, the average rate on a 30-year fixed mortgage increased from 6.15% at the start of 2026 to 6.46% by early April.
ATTOM’s analysis is based on recorded mortgage and deed-of-trust filings covering single-family homes, condominiums, townhomes, and multifamily properties with two to four units. Each recorded mortgage was counted as a separate loan origination.
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