Black Knight, Inc. released its latest report, Originations Market Monitor, which analyzes data on mortgage loans until the end of the month of 2021. Using daily lock bet data from Optimal Blue PPE Black Knight. According to the report, blocking has been lowered across all mortgage products, especially refinancing rates / timing.
“While interest rates on all mortgage products were on a downward trend in May, overall rate lockdowns continued to decline,” said Scott Happ, president of Black Knight Secondary Marketing Technologies. “The severity of the stock-to-sell shortfall appears to be the key reason for the 3.4% drop in buy blocks since April, but the drop in refinancing blocks seems to have more to do with borrower psychology. Of course, the rate hike in February dampened the market buzz, but despite a significant increase in refinancing incentives since then, refinancing activity simply did not recover as expected. ”
According to the report, data for the month showed that overall rate locks were down 4.7% compared to April, with a more pronounced 8.2% decline in rate locks / refinancing maturities. The share of refinancing in the market structure fell again in May, amounting to only 44% of the activity of raising borrowed funds for the month.
On an annualized basis, compared to April last year, only the refinancing rate / term (-45%) decreased, while both withdrawals (+ 32%) and purchase loans (+ 43%) grew year-on-year, according to Data Origin Market Monitor.
“As interest rates fell from March to May, incentives for refinancing increased by 15%,” Hupp continued. “This resulted in the number of high quality refinancing candidates in the market topping 14 million at the end of May, but rate lock volume was not keeping pace. Refinancing rate locks instead fell 27% over the same time period, slowing growth. at a time that would otherwise be the time of the expected acceleration. “
Explore more mortgage blocking data at Black Knight’s Originations Market Monitor Report May 2021…