Rate lock volumes snap nine-month losing streak as mortgage rates pull back
Mortgage rates have been on a steady decline since the beginning of the year, and the good news continues as rate lock volumes have snapped a nine-month losing streak.
According to the Mortgage Bankers Association (MBA), the Mortgage Credit Availability Index (MCAI) rose 0.2 percent in April, the first increase since July 2017. The index measures the availability of mortgage credit to borrowers and is based on data from Ellie Mae’s AllRegs Market Clarity business information tool.
The increase in the MCAI was driven by a rise in rate lock volumes. The MBA’s Market Composite Index, which measures the number of loan applications, rose 2.7 percent from the previous week. The increase in rate lock volumes suggests that lenders are more willing to offer lower mortgage rates to borrowers.
The news is welcome for borrowers who have been struggling to find affordable financing for their homes. The average rate for a 30-year fixed rate mortgage fell to 4.55 percent in April, down from 4.66 percent in March. The lower rates have made it easier for borrowers to qualify for a loan and have helped to fuel a surge in home sales.
The increase in rate lock volumes is a sign that lenders are feeling more confident in the housing market. The recent tax reform legislation has helped to boost consumer confidence and has made it easier for borrowers to qualify for a loan.
The increase in rate lock volumes is also a sign that lenders are feeling more confident in the economy. The unemployment rate remains low and wages are on the rise, which is encouraging more people to take out mortgages.
The increase in rate lock volumes is a welcome sign for the housing market, and it could lead to more home sales in the months ahead. With mortgage rates continuing to decline, more borrowers will be able to qualify for a loan and take advantage of the current market conditions.