Mortgage activity decreased on all types of loans in May



Despite 14 million high-quality refinancing candidates, mortgage lending volumes hit a 13-month low in May, according to Black Knight.

In the shadow severe housing shortage, the report “Monitoring the Market for Raw Materials” showed activity fell 4.8% since April, including a 3.4% decrease for purchases, 3.4% for refinancing when cashing out, and 8.2% for refinancing at rate and maturity.

The overall lending activity decreased by 0.7% annually, as the interest rate and maturity decreased by 44.8%, while the volumes of purchases and payments on payments increased by 43.4% and 32.2%, respectively. IN 30 year flat rate lowered again, falling to 3.15% on average from 3.23% in April.

“The fall of refinancing locks looks like it should do more with the psychology of the borrower“Said Scott Happ, president of aftermarket technology at Black Knight. “Of course, the rate hike in February eased the excitement in the market, but refinancing activity simply did not recover as expected.”

IN refinancing share of the loan volume fell to 44% from 45% in April, despite a 15% rise in refinancing incentives over the past two months. The refinancing rate lock fell 27% from March to May, “slowing down at a time that would otherwise be the expected acceleration,” Hupp continues.

Of the 10 largest metropolitan areas in terms of shipments in May, only Seattle showed an increase of 1.4% since April. Los Angeles ranked first in market share with 5.2% of the total nationwide, while activity was down 5.8% from the previous month. The Washington, DC statistical area accounted for 4.4%, while it was down 1.7% in April. The New York metro came in second with 4.3%, but individual shipments were down 9.1% m / m. Los Angeles, Phoenix, and San Francisco all had refinancing controlling stakes.


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