Rate lock volume saw an almost double-digit jump in January thanks to a big jump in purchases, according to Black Knight’s latest Mortgage Monitor report…(Black Knight)
- M-O-M: Overall rate lock volume was up 9.5% when compared to December.
- Y-O-Y: Overall rate lock volume was down 37.4% when compared to January 2021.
The almost double-digit jump in rate locks was thanks to a big 19.9% jump in purchase volume in January which was also up 7.7% year-over-year…
- Cash-out refinance volume was up 9.2% month-over-month and was up 4.1% year-over-year.
- Rate/term refinance volume was down 16.5% month-over-month and was down a whopping 80.5% year-over-year.
Rate/term refi’s continue to have the best credit score on average even with a one-point drop to 733, this is down 16 points from one year ago…
- Purchase’s average score increased two points to 732, this only one point lower than one year ago.
- Cash-out refis average score fell two points to 723, this 22 points lower than one year ago.
NOTE: Black Knight priced the 30-YR conforming mortgage rate at 3.77% which is 42 basis points higher than December and is up 94 basis points higher than one year ago.
Scott Happ, president of Optimal Blue, said that a rise in cash-out refis and purchases make sense in this current market…
- “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…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 still historically low rate being spurred to action by the quick acceleration in 30-year offerings over the opening weeks of the month.”