The article discusses the recent rise in mortgage purchase lock volumes, which increased by 7.5% in April despite fluctuations in mortgage rates due to market reactions to economic announcements. While refinancing activity declined, particularly in cash-out and rate-term refinances, the share of FHA loans rose significantly, suggesting a trend toward safer lending amid economic uncertainty. Consumer sentiment remains low, with many prospective homebuyers cautious about entering the market. Nonetheless, recent increases in purchase mortgage applications point to a possibly stabilizing market as the spring buying season commences.
According to Optimal Blue, the share of refis fell overall to 21% in April, down from 25% in March.
Last month's report showed early signs of spring homebuyer activity, and April confirms the season is underway with a solid increase in purchase locks.
A few strong days of refinancings in the beginning of the month couldn't be sustained.
Investor risk tolerance appears reduced as reflected by the shift toward FHA loans and away from non-conforming products.
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