WASHINGTON (Reuters) - U.S. home loan originations fell 12.6% last year as the Federal Reserve raised interest rates, pushing borrowing costs higher, and new tax laws capped the deductibility of mortgage interest payments, new government data showed on Friday.
Data released under the Home Mortgage Disclosure Act showed that the number of loans issued for home purchases, refinancing and home improvement fell by around 924,000 from the 2017 level of roughly 7.3 million.
The decline was led by a 23.1% decline in mortgage refinancings. Loans for home purchases increased by 0.3%.
Reporting by Howard Schneider; Editing by Andrea Ricci