The origination activity fell by 6% in October while the freezing of mortgage rates / refinancing fell by a further 23%

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– While the rate freezes on cash-out refinancing (-0.3%) and purchase loans (+ 0.4%) remained relatively stable in October, overall volumes fell by 5.9% due to a drop of more than 23% in rate / term refinancing blockages

– Interest rate / term refinancing activity is now down nearly 63% compared to the same period last year, while 30-year rates were still in the lower than 3% range.

– Black Knight’s OBMMI daily interest rate tracker showed the 30-year rate compliant at the end of the month at 3.27%, 6 basis points higher than in early October and up nearly 30 basis points in the last three months

– Likewise, FHA and VA loan rates jumped about 15 basis points during the month, while jumbo mortgage offers continued to rise at a slower pace and now stand at 10 basis points base below compliant rates.

– The decline in rate / term activity brought the market’s refinancing share down to just 45% of all foreclosure volume, the lowest since June of this year

– Average credit scores on withdrawals and interest rate / term refinances declined slightly from September, as high credit borrowers tend to sit on the sidelines in rising rate environments

– Compliant credit products regained market share in October, while government products lost ground and the share of jumbo increased slightly

JACKSONVILLE, Florida, November 8, 2021 / PRNewswire / – Today, Black Knight, Inc. (NYSE: BKI) announced the release of its latest Originations Market Monitor report, examining mortgage originator data across October 2021 The end of the month. Drawing on daily rate lock-in data from Black Knight’s Optimal Blue PPE – the most widely used mortgage pricing engine – the Fixtures Market Monitor provides the oldest and most comprehensive view of the world. sector on the assembly activity.

Black Knight, Inc. logo (PRNewsfoto / Black Knight, Inc.)

“The continued decline in rate / term refinancing freezes accelerated in October as 30-year rates continue to rise,” said the president of Black Knight Secondary Marketing Technologies. Scott Happ. “In fact, lockdowns on rate / term refinancing loans have fallen by over 23% since last month and are now almost 63% lower than they were at the same time last year. At the time, 30-year rate offers hovered between 2.8 and 2.9. %, while our daily OBMMI interest rate tracker showed the 30-year rate consistent at the end of October at 3.27%. rates.”

The month’s pipeline data showed overall rate locks down 5.9% from September, due to a 23.3% month-over-month decline in activity origination of rates / terms. The month’s drop lowers rate / term refinancing loans by 62.5% from last October’s level and brought the overall refinancing share of the market mix down to just 45%, the lowest since June 2021. Blockages on withdrawal refinances (-0.3%) and purchase loans (+ 0.4%) remained relatively stable for the month. Despite the marginal decline, withdrawal lock-in volumes are still up nearly 33% from the same period last year. Average credit scores on withdrawals and rate / term refinances fell by two percentage points in October, as high-credit borrowers tended to stay on the sidelines of a rising rate environment. Compliant credit products regained market share, while government products lost ground.

“As Black Knight noted in our most recent Mortgage Monitor report, the dynamics of the refinancing market are changing, with a radical shift from rate / term refits to loans with withdrawal,” Happ continued. “This shift tends to occur in any rising rate environment, let alone an environment in which US mortgage holders have more money. $ 9 trillion in exploitable equity at their disposal. Although we saw the pullout locks in October, the overall trend towards an equity-centric refi market remains strong and we will continue to monitor closely in the months to come. “

Each month’s Editing Market Observatory provides top-level assembly metrics for the United States and top 20 metropolitan statistical areas by share of total assembly volume. You can find much more details on the October origination activity in the full Black Knight Originations Market Monitor report located here.

About Black Knight
Black Knight, Inc. (NYSE: BKI) is an award-winning software, data and analytics company that drives innovation in the mortgage lending and services and real estate industries, as well as in capital markets and secondary. Businesses leverage our robust, integrated solutions throughout the homeownership lifecycle to help retain existing customers, gain new customers, mitigate risk and operate more efficiently.

Our customers rely on our proven, comprehensive and scalable products and our unwavering commitment to providing superior customer support to achieve their strategic goals and better serve their customers. For more information on Black Knight, please visit www.blackknightinc.com/.

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