A newly released report indicates that mortgage production last year rose 15 percent from the previous year. Leading the gain was refinancing activity.
Home lenders originated nearly 8 million residential loans for nearly $2 trillion during the period beginning on Jan. 1, 2016, and concluding on Dec. 31, 2016.
Industry-wide mortgage production moved up compared to the preceding year, when single-family loan originations came to an estimated 7.3 million loans for $1.7 trillion.
That was according to data reported Wednesday by CoreLogic Inc.
Mortgage originations were last that high in 2012.
Refinances made up just over half of total lending activity in 2016. Refinance originations were up 19 percent based on the dollar amount of production.
Last year’s origination of loans to finance a home purchase increased 11 percent from 2015.
“The purchase originations increase was due to an increase in home sales, a decrease in the share of homes purchased with all cash, and strong home price appreciation,” CoreLogic stated.
The report indicated that government share of 2016 activity was 25 percent, the same as a year earlier. The share reflected a declining share of mortgages insured by the Federal Housing Administration and a widening share of loans guaranteed by the Department of Veterans Affairs.
