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Total mortgage borrowing fell 6.6% during Q4 2005, compared to the previous quarter, according to Federal Reserve flow of funds table F 217.
Mortgage lending drops in Q4 2005
Mortgage borrowing by households fell even more, down 11.7% compared to Q3 2005.
Two-thirds of mortgage financing came from agencies (e.g., Fannie Mae) and issuers of asset-backed securities.
The rapid withdrawal of borrowers from the home mortgage market, as interest rates rose in Q4 2005, suggests that much of the borrowing over the last year or so was probably opportunistic, stimulated by low interest rates and aggressive marketing (e.g., Ditech.com)
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