Despite Plateau In Rate Increases, Mortgage Originations Fell Again In May
Summary
Despite the increase in mortgage rates hitting a plateau, rate-lock volume continued to slide in May, with declines seen across all loan types, according to a monthly report from Black Knight. The software, data, and analytics company today released its Originations Market Monitor report for May, analyzing daily rate-lock data from Black Knight’s Optimal Blue PPE — a widely use mortgage pricing engine — which the company claims provides the earliest and most comprehensive view of origination activity. “Ultimately, our OBMMI (Optimal Blue Mortgage Market Indices) daily interest rate tracker showed 30-year conforming offerings finishing the month at 5.34%, down 7 basis points from last month.” The month’s pipeline data, however, showed overall rate lock volume down 4.8% from April, with rate/term refinance lending activity down another 23.6% from April to mark an 89.9% year-over-year decline, Black Knight said. The combined decline in refinance locks pushed the refi share of the market down to just 18%, the lowest point on record since at least January 2018, when Optimal Blue began tracking the metric. “The month’s data shows a market struggling under the weight of significantly higher rates than Americans have enjoyed for the better part of the last three years,” Happ said.
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