Black Knight has launched a new monthly report titled the Originations Market Monitor, which will leverage daily rate lock data from the companyâs Optimal Blue PPE (product and pricing engine) to provide a comprehensive view of origination activity.
The report will be issued monthly and will update a series of key indicators from the PPE data and secondary market insight from the companyâs hedging platforms.
âRecent â and sharp â upward movements in interest rates have shifted the mortgage originations landscape very quickly,â Black Knight Secondary Marketing Technologies President Scott Happ said in a release. âThe wave of refinance activity of the last year and some months has suddenly given way to a purchase-heavy mix.â
According to the inaugural Originations Market Monitor, there was a divergence between purchase and refinance activity in March. While purchase locks were up 32 percent in March compared with the month before and up almost 70 percent since the start of 2021, cash-out refinances increased only 4.1 percent for the month. The rate of refinances fell more than 26 percent for the month and more than 35 percent since December 2020.
As a result, the originations market mix has shifted to purchases at 52 percent and refinances at 48 percent, the first time refinances have been below 50 percent of the market share in 15 months. Happ said it was not surprising, as Black Knightâs interest rate tracker showed the average conforming 30-year rate offering was 3.34 percent, 60 basis points higher than the end of February.
âThe implications of this shift touch nearly every area of mortgage lending, which in turn has implications for the wider economy,â Happ said. âIn an environment like this, having access to the fullest, most current market data is essential. In recognition of this fact, Black Knight is launching the Originations Market Monitor to provide the public a high-level view of the kind of data our clients use daily to drive greater profitability and efficiencies.â