Black Knight Originations Market Monitor: Purchase and Cash-Out Rate Locks Up in January on Rapid Rise in 30-Year Rates; Rate/Term Refinances Continue Freefall
Black Knight, Inc. (NYSE:BKI) released its latest Originations Market Monitor report, revealing that mortgage rates surged in January 2022, with the average 30-year conforming rate reaching 3.77%, the highest since March 2020. Despite this, overall lock activity rose for the first time in four months, driven by a 19.9% increase in purchase loans and a 9.2% increase in cash-out refinancing. Rate/term refinance activity fell sharply, declining 16.5% from December and marking an 80% year-over-year decrease. Non-conforming loans gained share, now at 16% of the market, as homeowner equity taps into cash-out refinances.
- Overall lock activity increased by 9.5% month-over-month.
- Purchase loan locks rose by 19.9%, showing strong demand.
- Cash-out refinance locks grew by 9.2%, capitalizing on homeowner equity.
- Rate/term refinance locks dropped by 16.5%, reaching the lowest level since May 2019.
- Refinance share of origination mix fell to 43%, the lowest since July 2019.
- Overall refinance activity has decreased by 80% year-over-year.
JACKSONVILLE, Fla., Feb. 14, 2022 /PRNewswire/ -- Today, Black Knight, Inc. (NYSE:BKI) announced the release of its latest Originations Market Monitor report, looking at mortgage origination data through January month-end. Leveraging daily rate lock data from Black Knight's Optimal Blue PPE -- mortgage lending's most widely used pricing engine -- the Originations Market Monitor provides the industry's earliest and most comprehensive view of origination activity.
"Amidst a backdrop of the Omicron variant, inflation concerns, Fed tapering and multiple rate hikes on the horizon, mortgage rates soared over the first weeks of 2022," said Scott Happ, president, Optimal Blue, a division of Black Knight. "Our OBMMI daily interest rate tracker showed the average 30-year conforming rate at
The month's pipeline data showed overall rate locks up
"With some
Each month's Originations Market Monitor provides high-level origination metrics for the U.S. and the top 20 metropolitan statistical areas by share of total origination volume. Much more detail on January's origination activity can be found in the full Black Knight Originations Market Monitor report located here.
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/.
For more information: | |
Michelle Kersch | Mitch Cohen |
904.854.5043 | 704.890.8158 |
michelle.kersch@bkfs.com | mitch.cohen@bkfs.com |
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SOURCE Black Knight, Inc.
FAQ
What is the latest update from Black Knight (BKI) regarding mortgage origination data?
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