Lock volume sinks as high mortgage rates crush refinancing activity

Mortgage rates popped back up to 7% in the aftermath of the new global tariff regime announced by President Donald Trump on April 2, as it tanked stock markets, the bond market and the dollar all at once.

Most of those tariffs have since been paused or reduced until July, and stock markets have largely regained the ground lost from the initial collapse. But the negative impact on rates has remained and doesn’t appear to be budging.

Elevated mortgage rates kept purchase lock counts flat compared to April, but it’s down 10% year over year. The rise in rates also pushed the share of loans toward conforming loans and away from loans issued by the Federal Housing Administration (FHA).

Numbers are down across the board on a month-over-month basis. The volume index for rate…