Mortgage lending decreased from March to April among the 21 largest recipients of government investment via the Capital Purchase Program (TARP funds), according to the Treasury.
The median percentage change in mortgage refinancing was a decrease of eight percent, while new home purchase lending dropped a median five percent.
Eight banks reported an increase in home purchase mortgages, while 10 reported a decline.
“All respondents indicated that low interest rates were sustaining high levels in mortgage refinancing and new home purchases,” Treasury said in a statement.
“Many respondents reported high mortgage application volume in April and strong pipelines, which were driven by attractive rates.”
However, monthly mortgage origination volume was down marginally among the top three, including Wells Fargo, Bank of America, and Chase, but up at Citi and U.S. Bancorp.
SunTrust dropped out of the top five thanks to stronger numbers at U.S. Bancorp.
Unfortunately, mortgage rates have since shot up big time, meaning numbers will likely plummet as future surveys are released.
Additionally, only first-lien mortgages seem to be getting in on the action, as second mortgages continue to fall out of favor.
“Home equity lines of credit saw a decrease in total originations. Many homeowners are electing to refinance their first lien mortgages and not to take on any additional debt via home equity lines of credit.”
Overall, total loan originations for all types of lending decreased by seven percent, or $22 billion, month-to-month, thanks to seasonal patterns and decreased appetite to take on additional debt.