Mortgage Rate Locks Are Down a Whopping 57 Percent From a Year Ago

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by Mish Shedlock, Mish Talk:

Housing crash? You bet. Let’s discuss the details.

Black Knight Mortgage Monitor

Please consider the Black Knight Mortgage Monitor August 2022 Review.

Key Details 

  • Volumes continued to fall across the board as the originations market adjusted to renewed interest rate pressures and continuing affordability challenges.

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  • Overall, locks were down 57.1% year over year.
  • Purchase locks, which now account for 82% of volume, were down 8.7% in August (28.2% year over year).
  • Purchase locks were down 30.2% over the last three months.
  • Rate/term locks decreased 13.9% in August, cashouts, which had been somewhat insulated early in the rate cycle, fell 8.9%.

Mortgage Origination by Loan Product

Black Knight Mortgage Monitor by Loan Product 2022-08

US taxpayers are increasingly on the hook housing loans.

Refinance and Purchase Locks Increasingly Fail 

Black Knight Mortgage Monitor Pull-Through  2022-08

Life-Style Maintenance Desperation Sets In 

Overall, 18 percent of operations are refis. I have some question in to Black Knight but I fail to see how any of these refi operations can be at a lower rate.

The numbers vary by city.

Refis account for 23% of the volume in Los Angeles CA, 22% in Phoenix AZ, 24% in Atlanta GA, 25% in Riverside CA, and 21% in Tampa FL.

Anyone doing refis at rates close to 6% from rates of under 3% in 2020 has serious issues somewhere!

Existing-Home Sales Fall 5.9 Percent, Down Sixth Consecutive Month

None of the above data should be surprising.

On August 18, I noted Existing-Home Sales Fall 5.9 Percent, Down Sixth Consecutive Month

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