ATTOM has published its Q4 2025 U.S. Residential Property Mortgage Origination Report, detailing that in Q4 of 2025, there were 1.72 million mortgages backed by residential properties (1 to 4 units). This represented a 6% decline from the previous quarter, but it was equivalent to the number of loans originated during the same period last year.
The total dollar amount of loans in Q4 of 2025—$627.3 billion—was up 1% from the previous quarter and up 4% compared to Q4 of 2024. The quantity and cumulative value of home purchase loans issued decreased both on a quarterly basis and compared to the previous year, while there was a significant increase in refinancing loans. For the first time in almost four years, refinancing loans constituted a larger portion of loan originations than purchase loans.
“Loans, particularly for new purchases, typically slow down in the fourth quarter as fewer people are buying houses,” said Rob Barber, CEO of ATTOM. “But this year, that seasonal slowdown was offset by a rise in refinancing, likely driven by the steady drop in mortgage rates, which have been some of the lowest we’ve seen since 2022.”
U.S. Lending Sees Quarterly, Annual Jumps
In Q4 2025, there were 1,719,362 mortgage loans issued, marking a 6% decrease from the 1,826,668 loans in Q3 but being roughly equivalent to the number in Q4 2024. Measured in dollar volume, the total of $627.3 billion for the fourth quarter was up by 1% compared to the previous quarter and up by 4% compared to the same quarter of the previous year.
In 29.1% (60) of the 206 metropolitan statistical areas with sufficient data for analysis, the number of mortgages rose on a quarter-over-quarter basis, indicating they had populations over 200,000 and at least 1,000 loans issued in Q4 of 2025.
Among metros with populations over 1 million, the largest quarterly gains in the number of loan originations came in:
- San Jose, CA (up 27.8%)
- San Francisco (up 13.9%)
- San Diego (up 12.8%)
- Los Angeles (up 11.1%)
- Tucson, AZ (up 7.6%)
Of those largest metros, the largest quarterly declines in loans came in:
- Buffalo, NY (down 47.9%)
- Austin, Texas (down 46.1%)
- Rochester, NY (down 36.7%)
- Atlanta (down 34.3%)
- Pittsburgh (30.3%)
Home Purchase Mortgage Experience Double Digit Declines
The number of mortgages issued for home purchases in the fourth quarter of 2025, totaling 685,583, represented a 14% decrease from the previous quarter’s figure of 801,275 loans and a 13% decrease compared to the same quarter in the previous year.
Measured in dollar volume, the total for purchase loans in the fourth quarter amounted to $278.1 billion, reflecting a 14% decrease from the previous quarter and a 10 percent decline compared to the same quarter last year. In the last quarter of the year, purchase loans accounted for 39.9% of all loans issued, a decrease from 43.9% in Q3 and 45.7% in Q4 of 2024. In some 89.8% (185) of the 206 examined metro areas, purchase lending decreased on a quarterly basis.
Among markets with populations over 1 million, the largest declines were in:
- Austin, Texas (down 58.4%)
- Buffalo, NY (down 46.8%)
- Atlanta (down 45.8%)
- Rochester, NY (down 42.8%)
- Detroit (down 38.2%)
The only large metros with quarterly gains were Tucson, AZ (up 8.8%); Los Angeles (up 2.2%); and Orlando, FL (up 1.6%).
Largest Share of Lending Activity Accounted for by Refinancing Trends
In Q4 2025, the number of refinancing loan originations reached 732,615, marking a 6% rise from the prior quarter and an 11% increase compared to the same period last year. The value of refinancing loans in the fourth quarter amounted to $289.1 billion, representing a 25% rise from the previous quarter and a 21% increase compared to Q4 of 2024.
The share of refinancing loans reached 42.6% of all loans, an increase from 37.8% in the prior quarter and 38.3% one year ago. Since Q1 of 2022, it has been the first time that loans for refinancing have made up a larger portion of all loans than purchase loans. In 69.4% (143) of the 206 examined metropolitan areas, the count of refinancing loans increased on a quarterly basis.
Among metros with populations over 1 million, the biggest increases in refinancing loans came in:
- San Jose, CA (up 91.1%)
- San Francisco (up 50.4%)
- San Diego (up 49.4%)
- Seattle, WA (up 46.1%)
- Portland, OR (up 36.5%)
HELOC Activity Down from Q3 but Ticked Up YoY
In Q4 2025, there were 301,164 home-equity line of credit (HELOC) loans, representing a decrease of 10 percent from the prior quarter but an increase of 9 percent compared to the same quarter last year. HELOC loans made up 17.5% of all loans, decreasing from 18.3% in the previous quarter and increasing from 16% in Q4 of 2024. In approximately 75.7% (156) of the 206 analyzed metros, the number of HELOC loans decreased on a quarterly basis.
Among metros with populations over 1 million, the largest quarterly drops in number of HELOCs issued were in:
- Austin, Texas (down 57.3%)
- Buffalo, NY (down 51.4%)
- Virginia Beach, VA (down 42.5%)
- Richmond, VA (down 35.7%)
- Detroit (down 33.4%)
Conclusion
In Q4 2025, loans backed by the Federal Housing Administration (FHA) made up 11.4% of all loans, a decrease from 14.1% in the previous quarter and 15.3% in the same quarter of the previous year. Loans from the Veterans Administration (VA) accounted for 7.4% of all loans, an increase from 5.7% in the previous quarter and 6.6% last year. Construction loans constituted 1.1% of all loans, consistent with the previous quarter and decreasing from 2.1% last year.
Even with the slight decline, FHA and VA mortgage programs are essential for aiding first-time homebuyers and military veterans in the face of affordability issues and constrained inventory. These programs, in conjunction with construction lending, play a vital role in sustaining the housing market by providing accessible financing options and facilitating homeownership opportunities throughout the U.S.
Overall, during Q4 of 2025, mortgage rates were among the lowest the nation had experienced since 2022. This contributed to a rise in refinancing loans, which for the first time since Q1 2022 comprised a larger portion of all loans than home purchase loans.
The post Refinancing Surpasses Purchase Loans in Q4 2025 first appeared on The MortgagePoint.
