TAMPA, Fla. (WFLA) — The total number of mortgage loans given in the third quarter fell close to 20% in the United States, according to new data by ATTOM, a real estate analysis company. According to the company, lending levels are now at a three year low, when it comes to secured residential mortgages.

ATTOM’s Q3 2022 U.S. Residential Property Mortgage Origination Report showed “1.97 million mortgages secured by residential property (1 to 4 units) were originated in the third quarter of 2022 in the United States.”

The company said it was a 19% drop from the previous quarter in 2022 and the “the sixth quarterly decrease in a row – and down 47% from the third quarter of 2021 – the biggest annual drop in 21 years.”

In terms of dollar value, lenders only issued $636.5 billion in mortgages for the third quarter of 2022, a 22% drop quarterly and 46% year-over-year, according to ATTOM. Their executive vice president for market intelligence said it was due to mortgage rates pricing buyers out of the market.

“There are no surprises in this quarter’s loan origination numbers, as the unprecedented jump in mortgage rates has battered both the purchase and refinance markets,” Rick Sharga, executive vice president of market intelligence at ATTOM, said. “Prospective homebuyers have been priced out of the market by the combination of 7% mortgage rates and higher home prices.”

However, as of the latest mortgage rate update from Freddie Mac, a federally backed mortgage company, rates remain in flux. While the rate a week ago was 7.08%, the newest measure showed it had dropped to 6.61% on Thursday.

“Mortgage rates tumbled this week due to incoming data that suggests inflation may have peaked,” Sam Khater, Freddie Mac’s Chief Economist, said. “While the decline in mortgage rates is welcome news, there is still a long road ahead for the housing market. Inflation remains elevated, the Federal Reserve is likely to keep interest rates high and consumers will continue to feel the impact.”

Sharga, focused on the decrease in lending, said refinancing was likely to decline due to “the majority of homeowners” having loans with interest rates below 4%.

ATTOM also reported that the drop in lending came as “661,000 residential loans were rolled over into new mortgages and borrowers took out only 943,000 loans to buy homes during the third quarter of 2022.”

Foreclosures are also on the rise, according to ATTOM. Their review of October foreclosure activity showed a 57% increase compared to 2021. Re/MAX also released new data on housing trends. Tampa’s inventory levels of available housing for sale rose significantly in October.

“The historic pace and magnitude of interest rate increases have created a reset and softened the housing landscape as intended. In these conditions, homebuyers should be able to consider multiple properties instead of fighting over one,” Nick Bailey, RE/MAX President and CEO, said. “For many buyers, it’s less about the actual interest rate right now, and more about affording the down payment and monthly mortgage payments, and whether the property fits their needs.”

Re/MAX provided a few “key metrics” for Tampa: 

  • $370,000 median sales price, up 17.5% YOY; up 1.4% MOM
  • 4,870 closed transactions, down 20.2% YOY; up 14.4% MOM
  • 5,529 new listings, down 19.8% YOY; up .6% MOM
  • 0.98% close-to-list price ratio, down .02% YOY; down 0% MOM 
  • 42 days on market, up 130.6% YOY; up 21.4% MOM
  • 2.7 months’ supply of inventory, up 249% YOY; up 11.6% MOM