Record $4.4 Trillion in Mortgage Originations in 2021; Year Sees $1.2 Trillion in Cash-Out Refis as Homeowners Tap $275 Billion in Equity, a 16-Year High

JACKSONVILLE, Fla. – March 7, 2022 – Today, the Data & Analytics division of Black Knight, Inc. (NYSE:BKI) released its latest Mortgage Monitor Report, based upon the company’s industry-leading mortgage, real estate and public records datasets. This month’s report looks into 2021’s record-breaking $4.4 trillion in mortgage originations and the distinct shift to an equity-driven refinance market. According to Black Knight Data & Analytics President Ben Graboske, though American homeowners are tapping their homes’ equity via cash-out refinances at the highest level since 2005, they are doing so judiciously, at roughly half the rate seen back then. tapping their homes’ equity via cash-out refinances at the highest level since 2005, they are doing so judiciously, at roughly half the rate seen back then.

“Entering 2021, consensus opinion was that originations would likely come in 20-25% lower than 2020’s record-breaking levels,” said Graboske. “Our own forecast suggested a slighter decline, on the order of -7%. In the end, total originations came in at $4.4 trillion, actually outpacing the prior record. At $1.7 trillion for the year, purchase lending also hit the highest point ever recorded, while the $2.7 trillion in refinance lending was a bit below 2020 levels. What stands out is the 20% growth in cash-outs over 2021, which accounted for $1.2 trillion in originations last year and $275 billion in equity withdrawn. In Q4 alone, homeowners tapped $80 billion – the most in 15 years – while marking the fifth consecutive quarter of more than 1 million borrowers pulling cash out. And yet, despite that sizable withdrawal, surging home values meant overall tappable equity still grew by nearly $450 billion in the quarter.