Rate lock volumes plunged in April as mortgage rates keep climbing

Key Facts

• LifestyleVisuals/E+ via Getty Images Amid a rapid boost in long-term mortgage rates, rate lock activity dropped in April, reflecting home affordability concerns, according to Black Knight's Originations Market Monitor Report.
• Specifically, rate lock volumes slid 20% M/M in April, driven by another sharp decline of 50% in rate/term refi activity in the wake of a rising interest rate environment, Black Knight highlighted.
• "Seen in the light of such quick and sharp rises in 30-year rates, April's declines in rate lock activity - though bracing - are hardly surprising, Black Knight said.
• Moreover, cash-out refi locks dipped 40% in April as homeowners look for alternatives "to access tappable equity without sacrificing historically low first-lien mortgage rates," Black Knight said.

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