Black Knight Originations Market Monitor: Rate Locks Down 4.7% Overall in November; Rate/Term Refi Originations 65% Below Last Year's Level
On December 13, 2021, Black Knight (NYSE:BKI) published its latest Originations Market Monitor report for November 2021. The report highlights a 4.7% decline in overall rate locks, with rate/term origination falling 9.4%. This marks the third consecutive monthly decline, with rate/term refinance activity down 65% year-over-year. Despite these declines, cash-out refinance volumes rose 36% from the previous year. The average loan amount increased by $7,000 to reach $337,000.
- Cash-out refinance locks increased by 36% year-over-year.
- Average loan amount rose by $7,000 to reach $337,000.
- Overall rate locks down 4.7% from October.
- Rate/term origination activity decreased by 9.4%.
- Rate/term refinance lending down 65% from last November.
- Refinance share of the market at its lowest since June 2021.
JACKSONVILLE, Fla., Dec. 13, 2021 /PRNewswire/ -- Today, Black Knight, Inc. (NYSE:BKI) announced the release of its latest Originations Market Monitor report, looking at mortgage origination data through November 2021 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.
"While 30-year rates ended November relatively flat from where they were at the start of the month, there was some volatility in rate offerings throughout the month," said Black Knight Secondary Marketing Technologies President Scott Happ. "Rates moved up and down within a roughly 21 basis point range throughout the month as the market digested news of both the Fed's tapering announcement and the new Omicron variant. Indeed, our OBMMI daily interest rate tracker showed average offerings reaching as high as
The month's pipeline data showed overall rate locks down
"While the rate of home price growth has slowed, it is still historically quite robust," Happ continued. "As a result, we continue to see non-conforming jumbo loan products gain market share at the expense of agency volumes. With higher conforming loan limits announced by the FHFA taking effect at the start of 2022, it will be interesting to see to what degree this trend persists. As it is, the average loan amount rose another
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 November's origination activity can be found in the full Black Knight Originations Market Monitor report.
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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SOURCE Black Knight, Inc.
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