Black Knightâs Originations Market Monitor report for November 2021 showed origination activity slowed for the third consecutive month, bringing originations volume down to its lowest level since February 2020.
November saw rate lock volumes fall 4.7 percent from October across the board. This was a result of rate-term refinance originations dropping 9.4 percent (nearly a 65 percent year-over-year decline). Locks on both purchase and cash-out refinances remain near 13 percent and 36 percent above last yearâs levels, respectively, despite experiencing a month-over-month 3.9 percent decrease and 2.5 percent decrease.
âWhile 30-year rates ended November relatively flat from where they were at the start of the month, there was some volatility in rate offerings throughout the month,â Black Knight Secondary Marketing Technologies President Scott Happ said in a release. âRates moved up and down within a roughly 21 basis point range throughout the month as the market digested news of both the Fedâs tapering announcement and the new Omicron variant. Indeed, our OBMMI daily interest rate tracker showed average offerings reaching as high as 3.36 percent in the week leading up to Thanksgiving before settling.â
Overall refinance share of the market stayed at 45 percent, the lowest it has been since June 2021, Black Knight stated.
âWhile the rate of home price growth has slowed, it is still historically quite robust,â Happ continued. âAs a result, we continue to see non-conforming jumbo loan products gain market share at the expense of agency volumes. With higher conforming loan limits announced by the FHFA taking effect at the start of 2022, it will be interesting to see to what degree this trend persists. As it is, the average loan amount rose another $7,000 to reach $337,000 in November.â