Optimal Blue: Lock Volume Falls Month-Over-Month in May

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Optimal Blue, Plano, Texas, released its May Market Advantage report, finding that total mortgage lock volume fell 5.87% month-over-month.

That finding stands in contrast to the usual seasonal lift in purchase activity; Optimal Blue pegged the spring homebuying season as “underperforming.”

Purchase activity was nearly flat month-over-month, but refinance activity took a dip. Refinance share declined from 21% to 16%. Rate-and-term refinances were down 44.4% month-over-month and cash-out refinances fell 10%.

The average credit score for purchase loans was 738, up 1 point from last month. For rate-and-term refinances it was 735, down 1 point from last month, and for cash-out refinances it was 695, down 2 points from the previous month.

Adjustable-rate mortgages made up 9.11% of lock volume, down from 10.3% in April.

Conforming loan share rose to 51.9% and nonconforming share was up to 16.4%. FHA share fell to 19.7%, VA dropped to 11.4% and USDA lending was flat at 0.7%.

The average loan amount fell to $386,460 from $387,523 in April. The average loan-to-value ratio was 80.87%.

First-time homebuyer share was 42% for conforming loans (down 1% from the previous month), 68% for FHA loans (down 2%) and 48% for VA loans (up by 1%).