Refinancing Rate Locks Fall to a 20 Percent Share

Black Knight says the steep ascent of mortgage rates, the 30-year conforming jumped 63 basis points in April, was matched by a sharp drop in rate lock activity. Overall volumes were down 20 percent from March, driven by a 50 percent decline in rate/term refinance activity. Cash-out refinancing fared little better. Homeowners appear unwilling to sacrifice their record-low rate existing first mortgages, seeking instead to access equity by way of home equity lines or second mortgages. Cash-out rate locks fell by 40 percent from March. The combined decline in refinance locks pushed the refi share of the market down to just 20 percent. It was the lowest share in Black Knight’s records which originated in January 2018. The company’s Optimal Blue Product and Pricing Engine (OBPPE) recorded an 11 percent decline in purchase mortgage rate locks but they remained largely unchanged from the prior April, indicating consistent and resilient homebuying demand. Government-backed lending increased during the month, and both FHA and VA lending captured market share from conforming products “Mortgage interest rates continued their steep ascent in April, with our daily interest rate tracker showing 30-year conforming offerings finishing the month at 5.42 percent,” said Scott Happ, president, Optimal Blue, a division of Black Knight. “To put that in perspective, in the last few weeks, we’ve blown through the recent peak seen in 2018 and are now hovering at or near the highest interest rates we’ve seen since the Great Recession.

May 10, 2022 Download our Mobile App: Download our Mobile App: Housing News Refinancing Rate Locks Fall to a 20 Percent Share Black Knight says the steep ascent of mortgage rates, the 30-year conforming jumped 63 basis points in April, was matched by a sharp drop in rate lock activity. Overall volumes were down 20 percent from March, driven by a 50 percent decline in rate/t... (read more) Housing News Only 19% of Consumers Think It's a Good Time to Buy Consumers opinion about the wisdom of buying a home went underwater in April 2021 and continues to sink. Fannie May says the question about whether it is a good or bad time to buy on its April 2022 National Housing Survey elicited positive responses ... (read more) Mortgage Rate Watch Mortgage Rates Drop Almost a Quarter Point in Just Over 24 Hours By the middle of the day today, certain rates at many mortgage lenders were a quarter of a percent lower than they were yesterday morning. A drop of that size maybe happens once a year on average, and it's almost always tied to some obvious cat... (read more) MBS Commentary MBS Live Recap: Another Solid Day, But It's All About Wednesday's CPI Another Solid Day, But It's All About Wednesday's CPI Bonds managed to post a 2nd consecutive day of gains on Tuesday--a feat seldom seen in 2022 apart from the initial flight to safety at the start of the Uk... (read more) Mortgage Rates Mortgage Rates Drop Almost a Quarter Point in Just Over 24 Hours 30 Yr. Fixed Rate 5.40% -0.12% Rate Change Points Mortgage News Daily 30 Yr. Fixed 5.40% -0.12 0.40 15 Yr. Fixed 4.78% -0.04 0.40 30 Yr. FHA 5.00% -0.12 0.00 30 Yr. Jumbo 4.62% -0.13 0.00 5/1 ARM 4.60% -0.05 1.00 Updates Daily - Last Update: 5/10 15 Yr. Fixed Rate 4.78% -0.04% Rate Change Points Freddie Mac 30 Yr. Fixed 5.27% +0.17 0.90 15 Yr. Fixed 4.52% +0.12 0.80 5/1 Yr. ARM 3.96% +0.18 0.20 Updates Weekly - Last Update: 5/5 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 5.36% -0.01 0.63 15 Yr. Fixed 4.68% 0.00 0.76 30 Yr. Jumbo 4.92% +0.03 0.43 Updates Weekly - Last Update: 5/4 MBS / Treasuries MBS Live Recap: Another Solid Day, But It's All About Wednesday's CPI UMBS 30YR 4.0 99.45 +0.22 Price / Yield Change MBS UMBS 4.0 99.45 +0.22 UMBS 4.5 101.66 +0.22 GNMA 4.0 100.27 +0.14 GNMA 4.5 102.17 +0.27 Pricing as of: 5/10 5:21PM EST 10 Year US Treasury 2.9889 -0.0449 Price / Yield Change US Treasury 2 YR Treasury 2.608 +0.010 5 YR Treasury 2.908 -0.034 7 YR Treasury 2.990 -0.045 10 YR Treasury 2.989 -0.045 30 YR Treasury 3.127 -0.029 Pricing as of: 5/10 5:21PM EST Latest Video Housing supply improves after a drop in sales due to high mortgage rates CPI report tomorrow is very important, says Cerity's Jim Lebenthal Housing supply set to increase year-over-year for first time in three years... The 9am Bond Report - May 10, 2022 Around the Web Reuters Fed's Waller Says Now Is the Time to 'Hit It' on Raising Rates Calculated Risk Blog Mortgage Originations by Credit Score and Age Calculated Risk Blog Housing Market: Where it's at. Where it's going. May 2022 Update CNBC Housing supply is finally improving, as high prices and rising rates weigh on sales Reuters Fed's Williams on board with 50 bps rate hikes at next two meetings Calculated Risk Blog Homebuilder Comments in April: Demand is slowing", "Investors pulling back" yahoo finance Cleveland Fed's Mester 'comfortable' with 0.50% rate hikes at next two meetings Calculated Risk Blog Fed Survey: Banks reported Eased Standards, Weaker Demand for Residential Real Estate Loans CNBC Inflation outlook for consumers falls from record high, Fed survey shows CNBC Fed's Neel Kashkari confident inflation can come down, but not without some pain Calculated Risk Blog NY Fed Q1 Report: Total Household Debt Increases to $15.8 trillion CNBC 10-year Treasury yield falls but holds above 3% CNBC Household debt nears $16 trillion despite rising rates and inflation

© 2022 Mortgage News Daily, LLC. | 19701 Bethel Church Rd. | Cornelius, NC 28031 Interest rates displayed are national averages and for informational purposes only. Actual rates from lenders may vary based on several factors including, but not limited to, credit worthiness, ability to replay, credit score, down payment, loan term, etc. This email was sent to: newsletter@newslettercollector.com. Go here to UNSUBSCRIBE from this email.