Latest news with #MarketAdvantage
Associated Press
08-04-2025
- Business
- Associated Press
Cooler Interest Rates Heat Up Refinances and Spark Early Signs of Purchase Demand
- Optimal Blue's March 2025 Market Advantage report shows an increase in non-conforming share as buyers seek greater flexibility and higher loan limits - PLANO, Texas, April 8, 2025 (SEND2PRESS NEWSWIRE) — Optimal Blue today released its March 2025 Market Advantage mortgage data report, showing a 24% surge in rate lock volume as early spring buyers returned to the market and homeowners jumped at the chance to refinance into lower rates. While still down 2% on a year-over-year (YoY) basis, purchase volumes were up 21% month-over-month (MoM). Rate-and-term and cash-out refinances jumped 52% and 20% MoM, respectively, together representing 25% of all lock activity. 'March brought a notable shift in borrower behavior,' said Brennan O'Connell, director of data solutions at Optimal Blue. 'Refinances made up a quarter of all lock activity for the first time in six months, and we saw a clear rise in non-conforming loan share as buyers looked for more flexible options and higher loan amounts. These are key indicators that consumers are actively adapting to the current rate environment.' Key findings from the Market Advantage report, derived from direct-source mortgage lock data, include: Refinances take share from purchase loans: Strong growth in refi activity during March pushed the share of refinances up to 25%, the highest level seen since September 2024. The pull-through rate for refinances was 63.3%. Purchase volume up MoM, but down YoY: Despite positive MoM momentum, purchase activity was down 2% YoY. Isolating loan counts instead of dollar volume – effectively controlling for home price appreciation – reveals an even steeper 6% decline in purchase activity. The pull-through rate for purchase loans was 82.9%. Non-conforming share rises: Conforming loan production continued to hover near historic lows, while non-Agency loan share hit its highest level since April of 2022. Non-conforming loans, which include jumbo and non-QM loans, accounted for 16.8% of total rate lock volume. Conforming loan share fell to 51% and FHA share dropped to 19.6%, while VA volume inched upward, reaching nearly 12% share. Adjustable-rate mortgages gain steam: ARMs accounted for just below 9% of total rate lock volume in March, a result tied to growing demand for non-conforming loan options. Optimal Blue will continue to monitor this data point as buyers search for greater affordability. Rates stay relatively flat: After a strong rally the last week of February, the OBMMI 30-year conforming fixed rate – the benchmark for the CME Group's Mortgage Rate futures – finished the month flat at 6.6%. FHA rates fell 8 basis points (bps) to 6.27%, while VA and jumbo rates rose a modest 3 and 4 bps to 6.13% and 6.73%, respectively. Refi credit quality ticks higher: March saw a 3-point increase in average credit scores for both cash-out and rate-and-term refinances, rising to 735 and 699, respectively, as higher-credit homeowners acted quickly on refinance opportunities. DTI trends downward: The average debt-to-income (DTI) ratio across all loans dropped from February's 37.3% to 36.7% in March, reflecting income growth outpacing the rise in household debt [*note 1]. This fall in DTI represents a healthier balance between monthly income and debt than tracked in previous months. Loan sizes grow alongside home prices: The average home purchase price rose from February's $480.2K to $486.9K in March, driving a MoM increase in average loan amount from $380.5K to $391.7K. The full Market Advantage report, which provides more detailed findings and additional insights into U.S. mortgage market trends, can be viewed at (PDF): This month's Market Advantage podcast features Optimal Blue Head of Corporate Strategy Mike Vough, offering additional market insights. Watch or listen to the episode: About the Market Advantage Report Optimal Blue issues the Market Advantage mortgage data report each month to provide early insight into U.S. mortgage trends. Leveraging lender rate lock data from the Optimal Blue PPE – the mortgage industry's most widely used product, pricing, and eligibility engine – the Market Advantage provides a view of early-stage origination activity. Unlike self-reported survey data, mortgage lock data is direct-source data that accurately reflects the in-process loans in lenders' pipelines. Nothing herein shall be construed as, nor is Optimal Blue providing, any legal, trading, hedging, or financial advice. About Optimal Blue Optimal Blue effectively bridges the primary and secondary mortgage markets to deliver the industry's only end-to-end capital markets platform. The company helps lenders of all sizes and scopes maximize profitability and operate efficiently so they can help American borrowers achieve the dream of homeownership. Through innovative technology, a network of interconnectivity, rich data insights, and expertise gathered over more than 20 years, Optimal Blue is an experienced partner that, in any market environment, allows lenders to optimize their advantage from pricing accuracy to margin protection, and every step in between. To learn more, visit ### MEDIA ONLY CONTACT: (not for publication online or in print) Leslie W. Colley Depth for Optimal Blue [email protected] (678) 622-6229 ### Keywords: Mortgage, Market Advantage mortgage data report, Optimal Blue, mortgage lock data, Conforming loan production, PLANO, Texas This press release was issued on behalf of the news source (Optimal Blue) who is solely responsibile for its accuracy, by Send2Press® Newswire. Information is believed accurate but not guaranteed. Story ID: S2P125367 APNF0325A
Associated Press
11-03-2025
- Business
- Associated Press
40% Jump in Rate-and-Term Refis Drives Overall Lock Growth as Purchase Activity Stalls
- Optimal Blue's February 2025 Market Advantage report indicates stabilizing conforming loan share amid refinance growth and sluggish purchase activity - PLANO, Texas, March 11, 2025 (SEND2PRESS NEWSWIRE) — Optimal Blue today released its February 2025 Market Advantage mortgage data report, showing a 7% month-over-month increase in mortgage lock volume driven primarily by a surge in refinance activity. Rate-and-term refinances saw the biggest jump, rising nearly 40% as homeowners seized the opportunity to lower their monthly payments. Cash-out refinances also edged higher, while purchase lock activity remained subdued for the second consecutive month. 'Interest rate improvement, while marginal, is attracting refinance activity as homeowners who bought at higher rates work the numbers and find they can reduce their monthly payments or tap into home equity,' said Brennan O'Connell, director of data solutions at Optimal Blue. 'The upcoming homebuying season will reveal whether purchase demand is poised for a rebound or if elevated rates will continue to keep buyers on the sidelines.' Key findings from the Market Advantage report, derived from direct-source mortgage lock data, include: Refi activity drives higher lock volume: Slightly lower interest rates encouraged a surge of refinance activity that pushed lock volume up 7% month-over-month (MoM). Most of the lift came from rate-and-term refinances, which rose nearly 40% in the improving rate environment; cash-out volume climbed a more modest 4%. Purchase locks continue to drag: Purchase activity remained low for the second straight month, with volume down 5% on a year-over-year (YoY) basis. Purchase lock counts – which control for home price appreciation – were down 9% from the same time in 2024. Conforming loan share stabilizes: Conforming loan volume edged higher for a second month, reaching 52% of total volume after hitting a multi-year low in December. FHA share remained just above 20%. VA share grew slightly to sit at around 11.5%. Non-conforming loan volume – which includes jumbo and non-QM loans – was mostly flat at 15.5%. Spread stays above long-term average: The mortgage rate spread to the 10-year Treasury hovered just above 230 basis points, a roughly 30 bps improvement from the same time last year but still roughly 30 to 40 bps above the long-term average. Refi credit quality ticks higher: The average credit score for cash-out and rate-and-term refinances rose by 2 and 4 points, respectively, to 695 and 732. Meanwhile, the average purchase credit score was flat at 737. Home prices, loan amounts edge higher: The average home purchase price rose from $476.2K in January to $480.2K in February, driving a MoM increase in average loan amount from $376.4K to $380.5K. The full Market Advantage report, which provides more detailed findings and additional insights into U.S. mortgage market trends, can be viewed at (PDF): This month's Market Advantage podcast features a guest interview with CoreLogic Chief Economist Selma Hepp. Access the podcast: About the Market Advantage Report Optimal Blue issues the Market Advantage mortgage data report each month to provide early insight into U.S. mortgage trends. Leveraging lender rate lock data from the Optimal Blue PPE – the mortgage industry's most widely used product, pricing, and eligibility engine – the Market Advantage provides a view of early-stage origination activity. Unlike self-reported survey data, mortgage lock data is direct-source data that accurately reflects the in-process loans in lenders' pipelines. Nothing herein shall be construed as, nor is Optimal Blue providing, any legal, trading, hedging, or financial advice. About Optimal Blue Optimal Blue effectively bridges the primary and secondary mortgage markets to deliver the industry's only end-to-end capital markets platform. The company helps lenders of all sizes and scopes maximize profitability and operate efficiently so they can help American borrowers achieve the dream of homeownership. Through innovative technology, a network of interconnectivity, rich data insights, and expertise gathered over more than 20 years, Optimal Blue is an experienced partner that, in any market environment, allows lenders to optimize their advantage from pricing accuracy to margin protection, and every step in between. To learn more, visit ### MEDIA ONLY CONTACT: (not for publication online or in print) Leslie W. Colley Depth for Optimal Blue [email protected] (678) 622-6229 ### Keywords: Mortgage, Optimal Blue, mortgage Market Advantage report, mortgage data report, finance, housing markets, PLANO, Texas This press release was issued on behalf of the news source (Optimal Blue) who is solely responsibile for its accuracy, by Send2Press® Newswire. Information is believed accurate but not guaranteed. Story ID: S2P124645 APNF0325A
Associated Press
13-02-2025
- Business
- Associated Press
January Mortgage Lock Data Shows Year-Over-Year Improvement in Refinance Volume Despite Higher Rates
- Optimal Blue's January 2025 Market Advantage mortgage data report highlights a softening purchase market, boost in refi demand among elevated rates - PLANO, Texas, Feb. 13, 2025 (SEND2PRESS NEWSWIRE) — Optimal Blue today released its January 2025 Market Advantage mortgage data report, revealing a sharp rise in year-over-year (YoY) refinance activity alongside a drop in purchase lock counts. The decline in purchase lock counts marks the lowest January count since Optimal Blue began tracking this data in 2019. Meanwhile, refinance lock volume surged even though the Optimal Blue Mortgage Market Indices (OBMMI) 30-year ticked above 7% for the first time since May. 'January lock data shows two important ways constrained affordability is impacting the housing finance market. On one hand, refinance activity saw impressive YoY growth despite elevated rates, signaling a growing pool of homeowners with mortgage rates high enough to justify a refinance. On the other hand, purchase lock counts declined YoY, marking the lowest January figures since we began tracking this data in 2019,' said Brennan O'Connell, director of data solutions at Optimal Blue. 'A combination of high home prices and rates are curbing purchase activity, while at the same time fueling refinance demand among homeowners who purchased when rates were even higher.' Key findings from the Market Advantage report, derived from direct-source mortgage lock data, include: Refinance activity surges YoY: Despite rates remaining above 6.8%, total refinance lock volume grew more than 20% YoY for both rate-and-term and cash-out refinances. This indicates that a growing share of borrowers with higher-rate mortgages are finding opportunities to refinance, such as those who purchased between August and November of 2023. Purchase lock volume rises MoM but declines YoY: Purchase lock volume climbed 16% from December, reflecting typical seasonal momentum at the start of the year. However, YoY purchase lock counts – which control for home price appreciation – were down 6%, marking the lowest January figures in six years. This follows a strong end to 2024 and will be an important trend to watch moving forward. Rates hold steady after an early-month jump: The OBMMI 30-year conforming rate started January above 7% but rallied late in the month, ending at 6.84% (up just 1 basis point). Other key rate indices followed a similar pattern, with jumbo rates up 2 bps, FHA rates unchanged, and VA rates up 4 bps. Conforming loan share remains near record lows: After hitting a multi-year low in December, conforming loan share edged up slightly to 51% of total production but remained near historical lows. This was offset by small declines in nonconforming and FHA loan share. VA lending share held steady. Credit scores show mixed trends: The average credit score for purchase and rate-and-term refinance loans rose by 1 point to 738 and 728, respectively. Meanwhile, the average credit score for cash-out refinances declined by 4 points to 693. Home prices increase while loan amounts remain stable: The average home purchase price rose from $473.7K to $476.2K, while the average loan amount dipped slightly from $376.9K to $376.4K. The full Market Advantage report, which provides more detailed findings and additional insights into U.S. mortgage market trends, can be viewed at (PDF): This month's Market Advantage podcast, which was recorded on-site at the Optimal Blue Summit, features HousingWire Editor in Chief Sarah Wheeler as a guest commentator. Access the podcast: About the Market Advantage Report: Optimal Blue issues the Market Advantage mortgage data report each month to provide early insight into U.S. mortgage trends. Leveraging lender rate lock data from the Optimal Blue PPE – the mortgage industry's most widely used product, pricing, and eligibility engine – the Market Advantage provides a view of early-stage origination activity. Unlike self-reported survey data, mortgage lock data is direct-source data that accurately reflects the in-process loans in lenders' pipelines. Nothing herein shall be construed as, nor is Optimal Blue providing, any legal, trading, hedging, or financial advice. About Optimal Blue: Optimal Blue effectively bridges the primary and secondary mortgage markets to deliver the industry's only end-to-end capital markets platform. The company helps lenders of all sizes and scopes maximize profitability and operate efficiently so they can help American borrowers achieve the dream of homeownership. Through innovative technology, a network of interconnectivity, rich data insights, and expertise gathered over more than 20 years, Optimal Blue is an experienced partner that, in any market environment, allows lenders to optimize their advantage from pricing accuracy to margin protection, and every step in between. To learn more, visit ### MEDIA ONLY CONTACT: (not for publication online or in print) Johnna Szegda Depth for Optimal Blue [email protected] 404.798.1155 ### Keywords: Mortgage, Optimal Blue, Market Advantage mortgage data report, finance, lenders, lending, Refinance activity, PLANO, Texas This press release was issued on behalf of the news source (Optimal Blue) who is solely responsibile for its accuracy, by Send2Press® Newswire. Information is believed accurate but not guaranteed. Story ID: S2P124020 AP-R15TBLLI RIGHTS GRANTED FOR REPRODUCTION IN WHOLE OR IN PART BY ANY LEGITIMATE MEDIA OUTLET - SUCH AS NEWSPAPER, BROADCAST OR TRADE PERIODICAL. MAY NOT BE USED ON ANY NON-MEDIA WEBSITE PROMOTING PR OR MARKETING SERVICES OR CONTENT DEVELOPMENT.
