Mortgage rate lock volume declines in April even as interest rates dip

• Black Knight's Originations Market Monitor shows overall rate lock volume fell 11.3% in April with cash-out (-13%) and rate/term (-20%) refinancing locks dropping more than purchase locks.
• April's month-end average conforming 30-year rate, at 3.17%, was down 17 basis points from March, but up 34 bps since the end of January.
• "Despite interest rates trending downward in April across all mortgage products, the decreases did not seem to be enough to bring borrowers – particularly refi borrowers – back to the table,” said Black Knight Secondary Marketing Technologies President Scott Happ.
• April's overall rate lock volume fell to the lowest point since May 2020; refinances in which borrowers improve their rate and/or term declined to the lowest level since January 2020.
• On a Y/Y basis, cash-out lending increased 27%, purchase loans rose 114%, and rate/term refinancing slid 34%.
• "As volume has tightened, we've seen average credit scores decline across all products and purposes, and conventional loans lose share to government-backed mortgages," Happ said.