Overall rate lock volume was up 3.9% in June, though locks on rate/term refis continued to fall (-4%). The rise in purchase locks also comes after two consecutive months of declines in that metric, putting purchase activity just 5% behind March’s record high.
The continued trend of rising home prices has led to continued growth in the jumbo share of lending at the expense of conforming loan products (which have given up about 750 basis points of market share over the last year).
Despite interest rates returning to March levels, locks on rate/term refinances are down 30% from that point and almost 60% since January. Though cash-outs remain strong–making up 42% of refinances and 18% of total locks–the refi share of the total market mix dropped again, accounting for just 43% of June’s overall origination activity.
Black Knight’s OBMMI daily interest rate tracker showed June’s month-end average conforming 30-year rate at 3.16%, up one basis point from May and 18 basis points lower than at the end of March.