Mortgage activity rebounds in June after two months of decline

June lending activity rebounded after two months of decline heart of the normal home buying season, according to Black Knight.

After tumble in april and reach a 13-month low in May, the Originations Market Monitor report showed a monthly increase of 3.9% in volume, with the 5.9% jump in purchasing activity and 9.9%, as cash-out refinancing more than offset the 3.9% drop in rate and term refinancing.

However, overall loans fell by 21.3% per year, taking into account the tidal wave of refinancing which resulted from lower interest rates last year. June rates and terms fell 56.8% year-on-year, while buybacks and withdrawals increased 7.3% and 10.2% respectively. The 30-year fixed rate has held steady at an average of 3.16% since May and increased from 3.12% a year ago.

“Overall, the locks climbed in June,” Scott Happ, president of secondary marketing technologies at Black Knight, said in a press release. “Despite the return of rates to levels last observed in early March, rate / term refis continued to decline and are now down 30% from this point and 60% since January. “

the refinance the share of loan volume fell by one percentage point for the third consecutive month, to 43%. This trend could continue even in the face of record home price appreciation, says Happ.

Of the 20 largest metropolitan areas by origination volume in June, Denver saw the strongest growth from May, increasing 10.3%. Philadelphia followed with a gain of 9.2%, followed by almost 8.8% in Sacramento, Calif. Four markets saw monthly declines, with Los Angeles in volume at 4.7%, Seattle at 4.1%, San Francisco at 1.8% and Washington, DC at 1.1%.

Despite the drop from May, Los Angeles retained its top spot in market share with 4.8% of the national total. The Washington DC metropolitan area accounted for 4.5% and New York came next with 4.1%. Only six of the 20 had majority refinancing stocks, led by 57% in Los Angeles and San Diego.

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