June’s mortgage lending activity rebounds after two atypical months

June lending activity bounced back following two down months in the typical heart of normal home buying season, according to Black Knight.

After tumbling in April and reaching a 13-month low in May, the Originations Market Monitor Report showed a 3.9% monthly rise in volume, as jumps of 5.9% in purchase activity and 9.9%, in cash-out refinances more than made up for the 3.9% drop in rate-and-term refinances.

However, overall lending plummeted 21.3% annually, given the tidal wave of refinances that resulted from the drop in interest rates last year. June’s rate-and-terms decreased 56.8% year over year while purchases and cash-out refis grew by 7.3% and 10.2% respectively. The 30-year fixed-rate held at an average of 3.16% from May and grew from 3.12% a year ago.

“Overall locks climbed in June,” Scott Happ, president of secondary marketing technologies at Black Knight, said in a press release. “Despite rates returning to levels last seen in early March, rate/term refis continued their downward slide and are now down 30% from that point and 60% since January.”

The refinance share of loan volume inched down one percentage point for the third straight month, to 43%. This trend could continue even in the face of record-breaking home price appreciation, Happ said.

Out of the 20 largest metropolitan areas by origination volume in June, Denver saw the most growth from May, rising 10.3%. Philadelphia followed with a 9.2% gain, trailed closely by 8.8% in Sacramento, Calif. Four markets had monthly declines, with Los Angeles falling furthest in volume at 4.7%, Seattle at 4.1%, San Francisco at 1.8% and Washington, D.C. at 1.1%.

Despite the drop from May, Los Angeles kept its hold on top spot in market share with 4.8% of the national total. The Washington D.C. metro area accounted for 4.5% and New York came next at 4.1%. Only six of the 20 had majority refinance shares, led by 57% in both Los Angeles and San Diego.

Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button