Originations Market Report

Loan Lock Volumes Fall Below Pre-Pandemic Norms For 3rd Month Straight

Posted on by TMN Editor
Lock volumes dipped almost 10% from August, bringing them down 30% in the last three months and 60% YOY, according to Black Knight’s latest Originations Market Monitor. Purchase locks are 10.2% below pre-pandemic levels. This is the third straight month of lock activity below pandemic norms. The decline in locks coincides with interest rates rising 91 basis points in September to 6.72%, their highest point in 15 years. Refinances made up only 16% of September’s lock activity, a new low. Of that, most were cash-out refis, though they are also down 26.2% from August and 78% YOY.  Rate/term locks remained basically unchanged. They are down 93.3% YOY, suggesting they’ve hit a floor now. Purchase lending accounted for most of September’s…

Purchase, Cash-Out Rate Locks Rose In January

Posted on by TMN Editor
Overall rate locks rose 9.5% month-over-month in January, with a 19.9% increase for purchase loans and a 9.2% increase for cash-outs, Black Knight reported in its Originations Market Monitor. Rate/term refinance locks dropped for the fifth month straight, down 16.5% to its lowest level since May 2019. It is an 80% decline YOY. The refinance share of January originations fell to 43%, its lowest since July 2019. “With some $10 trillion in homeowner tappable equity in the market, it makes sense that we’d see cash-out refinance locks on the rise,” Happ said.  “The significant jump in purchase originations can likely be attributed in part to typical pent-up, post-holiday demand. It could also represent skittish homebuyers hoping to lock in a…