Optimal Blue: November Mortgage Lock Volume Down 25%

(Image courtesy of Optimal Blue)

Optimal Blue, Plano, Texas, released its Market Advantage report, finding that overall rate lock volume fell 25% from the previous month, but was up 12% year-over-year.

The purchase lock volume fell 21% month-over-month, but was up 5% year-over-year.

However, purchase lock counts were down 3% year-over-year.

The average loan amount dropped in November, from $380,100 to $376,400. Average prices of homes fell from $482,400 to $477,400.

The conforming share of loans was just below 53%, down significantly from peak levels hit in 2020. Non-conforming lending fell slightly, but remained near a recent market share high at just under 15%.

FHA loans ticked up to 20% of all production–nearing its peak of 22% in November 2023.

VA loan volume, at 11%, fell from the past month but improved year-over-year.

“The rising percentage of FHA loans indicates affordability continues to be a concern among homebuyers as we move into year-end,” said Brennan O’Connell, director of data solutions at Optimal Blue. “In spite of the recent dip in purchase and refinance activity, we see the YoY improvements in purchase volume, cash-out and rate-and-term refinances as a bright spot.”

Cash-out refinances fell 20% and rate-and-term refinance volumes fell 50% from the prior month. But, cash-out refinances were up 35% year-over-year and rate-and-term refinances were up 95% year-over-year.

Average credit scores for purchase loans were flat at 739. For consumers seeking refinances, credit scores fell slightly. Cash-out average credit scores fell 2 points to 695 and rate-and-term refinance credit scores fell 1 point to 730.