jbancroft@imfpubs.com

Conventional-conforming mortgages led the fourth-quarter increase in new first-lien originations, according to a new Inside Mortgage Finance ranking and analysis.

An estimated $452.0 billion of conventional-conforming loans were produced in the fourth quarter of 2019, a 9.2% increase from the previous period. That marked the highest output for such loans since the third quarter of 2003, the peak of the strongest mortgage market on record, when conventional-conforming production weighed in at a staggering $776.0 billion.

Government-insured lending wasn’t far behind. An estimated $165.0 billion of government loans were originated in the fourth quarter, up 8.6% from the prior period.

Both the conventional-conforming and government sectors benefited from a huge increase in refinance lending. Early estimates point to a 31.4% increase in refi originations that offset a sharp 13.3% drop in purchase-mortgage lending.

For more details and exclusive tables on the product mix for the fourth quarter and full year, see the new edition of Inside Mortgage Finance.