Mortgage originations are booming, increasing nearly 75% from last year, according to data from the latest Equifax (EFX) National Consumer Credit Trends Report.
Majority of the growth is attributed to first mortgages, which grew 79.9% versus the first quarter of 2014 to $430 billion.
“The drop in mortgage rates that began in the fourth quarter of last year kicked off a refinance boomlet that accelerated in the first quarter, as rates fell further, averaging just 3.7% for the first three months of this year,” said Amy Crews Cutts, chief economist at Equifax. “While rates have recently reversed that trend and are back up to about 4%, they remain extremely low historically. These rates, coupled with a housing market that is showing signs of vigor, should carry the mortgage business over the summer.”
