However, the number of new purchase loans was up 39 percent compared to the first quarter of 2018, perhaps an indication that buyers were out early this year and snapped up available properties prior to the spring market.
The number of new mortgage loan originations that included refinancing, home equity borrowing and purchases rose by 15 percent during the second quarter of this year, compared to the previous quarter and was up by less than 1 percent compared to the second quarter of 2017.
Refinancing, which naturally drops when mortgage rates rise, dipped during the second quarter to the lowest level since 2014. However, this was down less than 1 percent from the first quarter of 2018 and down 2 percent during the second quarter of 2018 compared to the second quarter of 2017.
In addition, the number of home equity lines of credit increased by 2 percent from a year ago and 4 percent compared to the first quarter of the year, in part because of record levels of available home equity.
According to Black Knight’s Mortgage Monitor, 44 million households with a mortgage have enough equity for a cash-out refinance or a home equity line of credit without passing the threshold of retaining at least 20 percent equity in their home. The total amount of “tappable” equity surpassed $6 trillion during the second quarter of 2018, according to Black Knight.