Mortgage lending volume rebounded slightly in 2024 compared with 2023, driven by a resurgence in refinancing, according to iEmergent’s Mortgage MarketSmart report.
The forecasting and advisory services firm’s analysis of HMDA data shows that U.S. lenders originated a combined 4.9 million loans totaling $1.67 trillion in dollar volume across purchase and refi, up from $1.45 trillion in 2023.
Refinances surged 63% by dollar volume to $393.7 billion and accounted for nearly a quarter (23.5%) of purchase and refi dollars, up from 16.7% in 2023, according to the report.
Independent mortgage banks (IMBs) extended their lead in 2024, originating 65.4% of all purchase and refinance loans, up from 61.3% in 2023.
IMBs also claimed 16 of the top 25 spots by dollar volume and 17 by loan count, underscoring their continued role as the primary engine of mortgage lending despite representing just 18% of reporting institutions.
Due to rising home prices and interest rates, the average size of purchase and refinance loans grew to $339,903 in 2024, up from $323,282 in 2023.
Denial rates ticked up in 2024, with notable differences by lender type. People of color households made up a growing share of applicants in 2024, but approval rates remained unequal. Black borrowers, for instance, faced an 18% denial rate for purchase loans compared to 9% for non-Hispanic white applicants.
While banks and credit unions lowered their denial rates year over year, IMBs saw a slight
increase-contributing to uneven outcomes, since IMBs originated the majority of loans. Debt-to-income (DTI) ratios remained the most common denial reason across all racial and ethnic groups.
The report also shows increasing dominance by the leading lenders: The top five lenders accounted for nearly 20% of all loans and dollars originated in 2024, a notable uptick from 2023. This growing market concentration signals intensifying consolidation and competition among top-tier lenders.
“2024 brought modest recovery to the mortgage market, but also highlighted some of the structural inequities and concentration trends that shape lending outcomes today,” says Laird Nossuli, CEO for iEmergent, in the report. “iEmergent’s Mortgage MarketSmart puts this data into context-geographically, demographically, and competitively-so lenders can find smarter ways to grow and serve their markets.”
Photo: Kyle Glenn