Total mortgage rate locks by dollar volume decreased 10.6% in May, and total lock volume is down 29.5% from a year ago, as purchases now make up most of the volume, according to capital markets software provider MCT’s May MCTlive! Lock Volume Indices.
Rapid rises in rates have kept would-be borrowers on the sidelines in 2022, and declines were apparent in all three lock categories, the data shows.
Purchase locks are now on the decline, down 1.78% month-over-month and 10.1% from a year ago. Refinance volume continues to fall due to high rates; rate/term refinances are down 29.6% and cash out refinances are down 9% month-over-month.
From one year ago, cash out refinance volume is down 57.5%, while rate/term refinance volume has dropped 90%. Given rate/term refinance volume was already down 88% year-over-year in the April MCTlive! Lock Volume Indices, this month’s drop does not change the total significantly, according to MCT. Loan sizes were up 8.3% over the past year, with the average loan amount increasing from $291k to $315k.
MCT’s rate lock activity indices are based on actual dollar volume of locked loans, not number of applications.