Mortgage Rate Locks Show Consumers Moving to Residential ARMS and Jumbos

According to a report from data analytics firm Black Knight, rate lock count for residential mortgages fell in February to a level 42% below this time last year and 35% below pre-pandemic 2020 as borrowers move towards “rate-favorable offerings.” Locks on ARMs accounted for 10.3% of all locks, while locks on nonconforming loans accounted 12.2%, with both percentages representing a rising share of total locks. Meanwhile, the shares of conforming, FHA, VA and USDA loans were all reduced for the month, demonstrating that “rate, affordability and inventory challenges still loom large for the foreseeable future.”

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