Optimal Blue: Rate Lock Volume Up 3.5% in July

(Image courtesy of Optimal Blue)

Optimal Blue, Plano, Texas, released its Optimal Blue Market Advantage report for July, finding that the overall rate lock volume was up 3.5% month-over-month.

Purchase activity was up 2.5% month-over-month but down 7% year-over-year. However, that’s a significant improvement over June’s 17% year-over-year drop.  

Cash-out refinance volume increased 5.9% month-over-month, and rate-and-term refinance was up 12.3%. Refinance volume was 17% of total activity, and at its highest level in almost two years.

“The July report shows a notable uptick in refinance activity, particularly rate-and-term refinances, which jumped 12% as borrowers responded to declining interest rates,” said Brennan O’Connell, Director of Data Solutions at Optimal Blue. “The drop in the Optimal Blue Mortgage Market Indices 30-year conforming rate to 6.67% played a significant role in this growth, and we observed the highest level of refinance activity since September 2022.”

The loan mix in July also shifted. Conforming loans increased market share to 56.1%, FHA loans were at 19% and VA loans were at 11.9%. Non-conforming loans, such as jumbo and non-QM, fell to 12.4%.

The average loan amount also fell slightly, to $369,000 in July from $374,000 in June.

Credit scores remained fairly stable, with the average score at 732.