Rate locks fell in November thanks to a continued decline in refis, according to the latest data from Black Knight…(Black Knight)
- M-O-M: Total rate locks fell 4.7% when compared to October 2021.
- Y-O-Y: Total rate locks were down 20.1% when compared to November 2020.
Rate-term refinancing led the decline with an almost double-digit drop of 9.4% and a whopping 65% year-over-year decline.
- Purchases were down for the month (3.9%) but are up 12.6% when compared to the same time last year.
- Cash-out refis saw the smallest monthly drop (-2.5%) and the biggest year-over-year growth at 35.7%.
Credit scores for purchases increased one point from October to 731 which is only down one basis point from the same time one year ago.
- Cash-outs refis fell one point from October to 726 which is 19 basis points lower than one year ago.
- Rate/term refis increased one point from October to 735 which is 16 basis points lower than one year ago.
The confirming 30-yr fixed rate was unchanged from October at 3.27%, however this is 48 basis points higher than one year ago.
Scott Happ, Black Knight Secondary Marketing Technologies President, pointed out that it was a very volatile month for rates…
- “While 30-year rates ended November relatively flat…Rates moved up and down within a roughly 21 basis point range throughout the month as the market digested news of both the Fed’s tapering announcement and the new Omicron variant…”
NOTE: Purchases now make up 55% of the rate lock market as refi’s continue to dwindle.