Mortgage Application Volume Bounces Back

Mortgage loan application volume bounced back from last week’s low, rising 0.3%, according to the Mortgage Bankers Association’s (MBA) weekly survey. Purchase mortgage activity grew 8%, driving the increase. Last week’s numbers hit their lowest point since Mid-July, largely due to a 3% drop in refinancing. Refi dropped another 3% this week, but purchase mortgage applications made up for it, reaching their highest level since April. “Compared to the same week last September, which was right in the middle of a significant upswing in home purchases, applications were down 11%– the smallest year-over-year decline in 14 weeks,” said Joel Kan, associate vice president of economic and industry forecasting. The average loan size for a purchase application also rose, to $396,800.…

BLACK KNIGHT: Cash-Out Refi Tops Market For The First Time Since February

Cash-out refis skyrocketed in the last three months, while overall rate locks for mortgage originations increased in August, according to Black Knight’s latest Mortgage Origination Monitor report. Rate locks rose 1.3% from July, driven by a 7.6% increase in cash-out refinancing activity. Refi lending is up 41% over the last three months, making refi the largest share of the market for the first time since February.  “The rise in cash-out lending is hardly surprising given the extraordinary growth we’ve seen in tappable equity this year,” Black Knight Secondary Marketing Technologies President Scott Happ said. American homeowners gained a record $1 trillion in tappable equity in the second quarter of 2021. “We’ve now seen cash-out activity increase for three consecutive months,…