Overall rate lock volume was down 4.7% in May, according to Black Knight’s may mortgage monitor report (BK)
- Purchase locks fell 3.4% thanks to inventory issues putting downward pressure on purchase lending
- Refi’s were also down in May. With cash-out and rate/term refinance locks falling 3.4% & 8.2%, respectively.
The average loan amount was up $6,000 (+1.9%) to $316,500 as home prices continue to skyrocket across the country.
INTERESTING NOTE: Cash-outs and purchase loans were both up from last May, but rate/term refinance lending was down 45% year-over-year.
Scott Happ, Black Knight Secondary Marketing Technologies President, said inventory shortages continue to impact the market in different ways. “The severity of shortages in for-sale inventory seems to be a key driver behind the 3.4% decline in purchase locks from April, but the dip in refinance locks seems to have more to do with borrower psychology.”