LDI - Mortgage rate lock volume declines in April even as interest rates dip

Black Knight's Originations Market Monitor shows overall rate lock volume fell 11.3% in April with cash-out (-13%) and rate/term (-20%) refinancing locks dropping more than purchase locks.April's month-end average conforming 30-year rate, at 3.17%, was down 17 basis points from March, but up 34 bps since the end of January."Despite interest rates trending downward in April across all mortgage products, the decreases did not seem to be enough to bring borrowers – particularly refi borrowers – back to the table,” said Black Knight Secondary Marketing Technologies President Scott Happ.April's overall rate lock volume fell to the lowest point since May 2020; refinances in which borrowers improve their rate and/or term declined to the lowest level since January 2020.On a Y/Y basis, cash-out lending increased 27%, purchase loans rose 114%, and rate/term refinancing slid 34%."As volume has tightened, we've seen average credit scores decline across all products and purposes, and conventional

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Mortgage rate lock volume declines in April even as interest rates dip