Mortgage origination volume accounts for the sum of all new mortgage loans funded by lenders during a set period, such as a month, quarter, or year. This includes loans for purchasing a home as well as refinancing existing mortgages. When a lender “originates” a mortgage, it means the loan application has been approved and the funds have been disbursed to the borrower.
Across the U.S., this total volume often reaches hundreds of billions of dollars quarterly, as tracked by institutions like the Consumer Financial Protection Bureau (CFPB) and the Mortgage Bankers Association (MBA). Understanding mortgage origination volume helps gauge consumer confidence, housing demand, and economic momentum.
Interest rates are a primary driver; lower rates generally increase origination volume by making borrowing cheaper. For example, when rates drop, many homeowners refinance to secure lower monthly payments, raising refinance origination volume significantly. Conversely, higher rates tend to reduce refinancing and slow purchase activity.
Other factors influencing origination volume include the health of the job market, wage growth, housing supply, and lending standards. Tight credit standards reduce loan approvals, while looser standards increase them.
Mortgage origination volume separates into purchase loans and refinance loans, which often fluctuate differently. Purchase volumes reflect demand for buying homes driven by life events and economic optimism. Refinance volumes tend to spike with favorable interest rate changes.
This number impacts broader economic variables: rising origination volume signals growth, while a decline may indicate a slowing economy. Lenders’ competition in high-volume markets often benefits borrowers with better rates and terms. The Federal Reserve watches this metric closely as part of its interest rate decision process.
Common misunderstandings include the belief that origination volume only tracks new home purchases, while refinancing can constitute a large or greater share of total volume. Also, higher volume isn’t always positive if it results from risky lending practices, contributing to market instability.
For more on mortgage refinancing, see our Mortgage Refinance guide. To understand loan qualification rules that affect lending, check out Qualified Mortgage (QM).
Reliable data on mortgage market trends is available through the Consumer Financial Protection Bureau and the Mortgage Bankers Association. For Federal Reserve perspectives, visit Federal Reserve Economic Data.