Mortgage lending has reached record levels in California, with affluent neighborhoods showing the largest increase, First American Real Estate Solutions reports. The research firm says lenders made 925,714 loans in the first nine months of the year, up from 577,365 a year earlier.

Overall loan volume has increased by more than 60%, the report says, but the top 10 neighborhoods by household income have seen a 73% jump in lending activity.

Lending increased just 40% for neighborhoods in the bottom 10% income bracket.

Nima Nattagh, director of research, said California's housing recovery has spread to lower-income areas, despite the disparity in numbers. Mortgages for home purchases increased 27% in both the top 10% and the bottom 10% income brackets.

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