Rate Lock

Rate Locks Dip To New Low, Refis Hit Hard

Posted on by TMN Editor
Origination activity continues to sink as the market corrects, with refinances seeing major drops. Black Knight’s October 2022 Originations Market Monitor report found that rate lock dollar volume dropped 14.3% month-over-month to its lowest level since February 2019. Refinances have been hit especially hard, making up just 14% of all origination activity in October. Cash-out refis, which had previously seemed resilient due to widespread equity gains, fell 25.1% from September and are down 83.6% YOY. Rate/term refis sank an additional 15.7% and are now down 92.6% YOY. “With interest rates now at their highest level in 20 years, the refi market is rapidly approaching a bottom,” said Scott Happ, president of Optimal Blue, a division of Black Knight.  “Indeed, our…

Origination Activity Fell Again In December

Posted on by TMN Editor
Origination activity fell for the fourth consecutive month in December as higher rates and seasonal slowdown pushed rate locks down, according to Black Knight’s December 2021 Origination Market Monitor. Rate locks fell 18.3% from November to December and 35% year-over-year (YOY), fueled by a 22.5% drop in locks on purchase loans and a 17.1% drop in rate/term refinances. Rate/terms refis hit their lowest point in two years at the end of 2021. Locks on cash-out refis also dropped by 10% from November, though they are up 18% YOY thanks to incredible gains in home equity. The share of refinances rose to 48% due to the decline in purchase locks, though average refi credit scores were down 20 points YOY as…