Mortgage lending exercise in June rebounded after two atypical months

According to Black Knight, lending bounced back in June after two months of decline in the typical heart of the normal home buying season.

After a slump in April and a 13-month low in May, the Originations Market Monitor Report showed a monthly volume increase of 3.9%, as jumps of 5.9% in buying activity and 9.9% in cash out-refinancing more than made up for the 3.9% decline in interest-bearing and on-time refinancing.

However, given the tidal wave of refinancing that resulted from the decline in interest rates last year, overall lending plummeted 21.3% annually. June rates and terms declined 56.8% yoy, while Refis purchases and withdrawals rose 7.3% and 10.2%, respectively. The 30-year fixed interest rate averaged 3.16% from May and rose from 3.12% in the previous year.

"In June, bans went up overall," said Scott Happ, president of secondary marketing technologies at Black Knight, in a press release. "Despite the return of interest rates to the last level recorded in early March, the interest / maturity refis continued their downward trend and have now fallen by 30% from this point and 60% since January."

The refinancing share of the loan volume fell for the third month in a row by one percentage point to 43%. This trend could continue even in the face of a record-breaking appreciation in home prices, Happ said.

Of the 20 largest metropolitan areas by issuance volume in June, Denver recorded the strongest growth in May with 10.3%. Philadelphia followed with an increase of 9.2%, closely followed by 8.8% in Sacramento, California. Four markets posted monthly declines, with Los Angeles declining the most at 4.7%, Seattle at 4.1%, San Francisco at 1.8%, and Washington, DC at 1.1%.

Despite the decline in May, Los Angeles retained its top position in market share with 4.8% of total national sales. To the metropolitan area of ​​Washington D.C. accounted for 4.5%, followed by New York with 4.1%. Only six of the 20 had majority refinancing stakes, led by 57% in Los Angeles and San Diego.

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