Black Knight Originations Market Monitor: Lock Volumes Fall Despite Marginally Lower Rates as Reluctant Buyers Face Continuing Inventory Shortage
- The Optimal Blue Mortgage Market Indices showed 30-year conforming rates dipping below
6.25% in the first week of April before finishing at6.45% , for an average of6.38% for the month, 17 basis points lower than March's average - The 10-year Treasury yield ended April at
3.44% , pushing the spread with mortgage rates back above3% , nearing its high point since the Fed began raising rates last year - Rate lock volumes fell
22% month over month, with half the change attributable to March having three additional business days; adjusted for these calendar effects, April volumes dropped just10% - Month-over-month changes were similar across all loan purposes, with purchase locks down
21.8% , cash-out refinances declining20.6% and rate/term refis down27.6% - The refi share of lock volume dipped below
13% to12.8% , setting a new floor for refi production - Conforming loans took share from all other loan products in April, while FHA saw the biggest drop – a rare pullback since FHA began regaining share in late 2021 when it held
10% of total volume - Purchase lock counts were down
45% year over year;38% below those in pre-pandemic April 2019 - Average loan amount remained flat at
, while the average purchase price rose slightly from$355 K to$445 K$447 K - Credit quality ticked higher across the board with purchase, cash-outs and rate/term refis all picking up 2 points on average
- ARM share dropped to
7.8% of all lock volume, down from8.8% in March
"Despite the fact that mortgage rates on average were lower in April, rate lock volumes took a hit," said Andy Walden, vice president of enterprise research and strategy at Black Knight. "From March to April, volumes were down
The month's pipeline data showed locks down across the board, with purchase locks down
"After seeing purchase rate locks pull to within
Each month's Originations Market Monitor provides high-level origination metrics for the
About Black Knight
Black Knight, Inc. (NYSE:BKI) is an award-winning software, data and analytics company that drives innovation in the mortgage lending and servicing and real estate industries, as well as the capital and secondary markets. Businesses leverage our robust, integrated solutions across the entire homeownership life cycle to help retain existing customers, gain new customers, mitigate risk and operate more effectively.
Our clients rely on our proven, comprehensive, scalable products and our unwavering commitment to delivering superior client support to achieve their strategic goals and better serving their customers. For more information on Black Knight, please visit www.blackknightinc.com/.
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