Mortgage activity recovered in June after two months of decline

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Lending activity recovered in June after two months of decline in the heart of the normal home buying season, according to Black Knight.

After somersault in April and reaching 13 month low in MayOriginations Market Monitor reported a 3.9% monthly increase in volume, as a 5.9% jump in purchasing activity and 9.9% cash-to-cash refinancing more than offset a 3.9% drop in refinancing rates and terms.

However, total lending fell 21.3% year on year, given the refinancing tidal wave as a result drop in interest rates last year… June rates and conditions were down 56.8% year-over-year, while purchases and repurchase payments rose 7.3% and 10.2%, respectively. The 30-year fixed rate has averaged 3.16% since May and rose from 3.12% a year ago.

“The total number of locks increased in June,” Scott Happ, president of secondary marketing technology at Black Knight, said in a press release. “Despite the fact that rates return to levels were last seen in early March, interest rates / refinancing terms continued to decline and are now down 30% from now and 60% from January. “

IN refinancing share of the loan volume decreased by one percentage point for the third month in a row to 43%. This trend may continue even in the face of record rise in house pricesHupp said.

Of the 20 largest metropolitan areas in terms of shipments, Denver posted the largest growth in June compared to May, up 10.3%. Philadelphia followed closely with a 9.2% gain, with a slight 8.8% lag in Sacramento, California. Four markets showed monthly declines, with the largest volume declines in Los Angeles at 4.7%, Seattle at 4.1%, San Francisco at 1.8%, and Washington, DC. 1.1%.

Despite the fall in May, Los Angeles retained its leading position in market share with 4.8% of the national total. The Washington, D.C. metro accounted for 4.5% and New York City accounted for 4.1%. Only six of the 20 had a controlling interest in refinancing, led by 57% in Los Angeles and San Diego.



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