The most recent pending home sales data from the National Association of Realtors indicated that home sales were likely to bounce back in the coming months after declining for several months in a row. It looks like that’s just what is happening.
A new report from Black Knight shows that purchase mortgage interest rate locks were up in June, signaling that homebuying activity increased in June.
According to Black Knight’s report, overall rate locks were up 3.9% in June over May, with purchase rate locks rising by 6%. The increase was even more pronounced in cash-out refinance locks, which were up by 10% in June.
The increase in purchase rate locks comes after two months of declines, although Black Knight notes that May had fewer business days than June, which contributed to May’s lower figures.
“While the volume of purchase loan locks per day was down slightly from May, they rose for the month due to the three additional business days in June, putting purchase activity just 5% behind March's record high,” Black Knight wrote in its report.
Meanwhile, rate and term refinances were down 4%, which helped drive the refinance share of the overall market down to 43%.
"Following two consecutive months of declines – and during the typical seasonal peak for purchase lending, no less – overall locks climbed in June,” said Black Knight Secondary Marketing Technologies President Scott Happ.
“Both purchase and cash-out refinances were up, but refis in which the homeowner improves their rate or term continued their downward slide, despite rates returning to levels last seen in early March,” Happ added. “Such rate/term refis are now down 30% from that point and 60% since January."