Mortgage reefinings jump despite higher rates
In the meantime, the volume of refinancing locking rose, even as a 30-year-old conforming rates via the optical blue mortgage market indices (OBMMI) for the first time since May checked above 7%. The REFI locking volume grew for both rate and term and cash-out products, indicating that a growing proportion of borrowed people who have purchased houses will find opportunities for refinancing between August and November 2023.
The total rate lock volume rose by almost 11% in January, powered by a monthly increase of 16% in the purchase volume and an increase of 9% in the reference volume. The Refis-en-Termefis fell 20% from December due to a less friendly mortgage environment.
“January -lock data shows two important ways in which limited affordability has the market for home financing,” said Brennan O’Connell, director of Data solutions at Optimal Blue, in a statement.
“On the one hand, the refinancing activity saw an impressive yo -growing despite raised rates, which a growing pool of homeowners with mortgage interest indicates high enough to justify refinancing. On the other hand, the purchasing locks JoJ fell and marked the lowest figures in January since we started keeping this data in 2019. A combination of high house prices and rates is the purchasing activities, and at the same time when the rates were even higher. “
Based on the percentage of locking volume over the 20 largest American metro lines, New York City was at the forefront of 5.2% of all locked loans in January. The average loan amount was $ 576,385. It was followed by Dallas (3.4% of the lock volume) and Washington, DC (3.3%).
The report noted that the OBMMI 30-year-old in accordance with the rate moved above 7% at the beginning of January, but was risen at 6.84% at the end of the month (only 1 basic point). Jumbo -Mharmaginrente Reden with 2 BPS, the VA loan rates rose with 4 BPS and the FHA loan rates remained unchanged.
Optimal Blue reported that after touching a multi -year layer in December, the conforming share of the loan has risen somewhat to 51% of the total production, but remained in the vicinity of record lows. This was compensated by small falls from non -compliant and FHA loan shares, while the VA loan share remained stable.
Credit scores showed mixed trends in the report, with the average credit score for purchasing loans and interest rate differences and term reefining with 1 point to 738 and 728 respectively. In the meantime, the average credit score for Cash-Outrefis fell by 4 points to 693.
The last collection meals of the report was that house prices rose, while the loan amounts remained stable. The average purchase price of home rose from $ 473,000 in December to $ 476,200 in January, while the average loan amount fell slightly from $ 376,900 to $ 376,400.
