Optimal Blue: Lock Volumes Up 28% in September

(Image courtesy of David Vives/pexels.com)

Optimal Blue, Plano, Texas, found lock activity surged in September as rates fell, with total lock volume up 28.2% month-over-month and 21.1% year-over-year.

Purchase locks were up 5.9% month-over-month and 8.9% year-over-year.

More strikingly, rate-and-term refinances saw 153.7% month-over-month growth and were up 55.1% year-over-year.

Cash-out refinances were up 13.4% from the previous month, and increased 27.9% year-over-year.

The refinance share was 39% of all locks–the highest since 2022.

“The rate rally that began in late summer accelerated in September, and borrowers reacted quickly,” said Mike Vough, head of corporate strategy at Optimal Blue. “Rate-and-term refinance locks jumped 153% month over month, lifting total refi share to 39%–the highest level we’ve seen in more than two years. That momentum also spilled into purchase lending as affordability improved, particularly for first-time homebuyers.”

The pull-through rate for purchases was up 58 basis points to 83.6% and refinance pull-through increased 82 basis points to 60.2%.

The average loan amount was $403,746 in September, up from $386,387 in August and $382,476 in September.

Looking at loan product mix, conforming loans stood at 52.5%, nonconforming at 16.7%, FHA at 16.9%, VA at 13.2% and USDA at 0.6%.

Average credit scores were at 738 for purchase locks, up one basis point from the previous month. They were at 746, up by nine points, for rate-and-term refinances and were at 701, up seven points, for cash-out refinances.