Mortgage Activity Picks Up Despite Affordability Concerns

Despite rising concerns from prospective homebuyers about the state of the economy, a recent report from property data provider ATTOM shows that mortgage originations actually grew in Q-2 2025. According to the report, mortgage originations grew by 19.4% quarter-over-quarter to 1.76 million mortgages. Year-over-year, they grew by 6.3%.

Total mortgage activity increased quarterly in 201 of the 212 metropolitan statistical areas analyzed in the report. At 70.8%, Indianapolis saw the highest increase in mortgage originations, followed by San Jose, Calif., at 47.3%, and then Rochester, N.Y., at 43.8%.

While lending levels remain below their pandemic-era peaks, the Q2 gains were driven more by seasonal momentum and brief rate dips than any broad-based housing recovery. Refinance lending, in particular, showed signs of life as some homeowners looked to reset terms during a window of marginally improved rates.

“Mortgage activity perked up a bit in the second quarter, but it’s not a clear signal that the market has turned a corner,” said Rob Barber, CEO at ATTOM. “The increase in purchase and refinance activity reflects some buyer and homeowner response to marginal rate improvements, but underlying affordability and economic uncertainty continue to hold the market in check. This was a typical spring bounce, not yet a breakout.”