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. “
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.