Overall rate locks decreased 4.7% from October, primarily driven by a 9.4% dip in rate/term origination activity, according to the most recent Black Knight, Inc. Originations Market Monitor report, which analyzed mortgage origination data through November 2021.
Key findings:
- Rate/term refinance lending has fallen in eight of the 11 months of 2021—down 65% from last November.
- Overall refinance share of the market mix remained at 45%—the lowest since June.
- Locks declined overall, with cash-out refinances down 2.5% and purchase loans down 3.9%.
- Cash-out lock volumes are still up nearly 36% YoY.
The takeaway:
“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 in a statement. “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 3.36% in the week leading up to Thanksgiving before settling.”
“While the rate of home price growth has slowed, it is still historically quite robust,” Happ added. “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 $7,000 to reach $337,000 in November.”
To read the full report, click here.
