July’s year-over-year total lock volume is down 46.5% from last summer, but the month-over-month rate/term refinance lock figure is up 11% from June, according to MCTlive! Lock Volume Indices for July 2022, largely due to the recent bond market rally.
Total mortgage rate locks by dollar volume decreased 1.5% in July, with purchase locks also declining 1.5% month-over-month and 8.9% from a year ago, according to MCT’s data. Rate/term refinances are down 11.4% and cash out refinances are down 5.3% month-over-month.
From one year ago, cash out refinance volume is down 77.9%, while rate/term refinance volume is down 94.2%. MCT said rate/term refinance volume was already down 90% year-over-year in the June MCTlive! Lock Volume Indices, so this total was largely unchanged. Loan sizes were up 8.3% over the past year, with the average loan amount increasing from $291k to $315k.
The July MCTlive! Lock Volume Indices is broken out by transaction type: purchase, rate/term refinance, and cash out refinance. MCT’s rate lock activity indices are based on actual dollar volume of locked loans, not number of applications.