Optimal Blue Reports Lock Volume Closes 2025 on Firm Footing
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Mortgage rate-lock activity ended the year on a firm footing, bucking typical holiday-driven seasonality, according to Optimal Blue, Plano, Texas.
The firm’s December 2025 Market Advantage mortgage data report found that total lock volume rose 2% month over month from November and finished 30% higher year over year, driven primarily by rate-and-term refinances, which climbed 13% from November and more than 170% compared with December 2024.
Cash-out refinance volume rose a modest 1% month over month but remained up a strong 35% from a year before, Optimal Blue said. Purchase activity dipped just 1% from November despite holiday headwinds to end December up 7% year over year.
The report noted that mortgage rates were largely stable in December. The Optimal Blue Mortgage Market Indices 30-year conforming fixed rate finished the month flat at 6.14%. Meanwhile, the 10-year Treasury yield rose 14 basis points to 4.14%, reversing November’s spread widening and pushing the 10-year-to- Optimal Blue Mortgage Market Indices spread to 200 basis points at year-end.
Mike Vough, senior vice president of corporate strategy at Optimal Blue, said finishing the year with higher lock volume is a clear signal that borrower demand has adjusted to today’s rate environment. “Refinance activity continues to do the heavy lifting, but the fact that purchase volume held essentially flat month over month and finished the year higher than last December speaks to a market that is more durable than many expected,” he said.
Lenders also made notable adjustments on the secondary side as pricing dynamics and execution strategies evolved. Best-efforts-to-mandatory spreads widened across products, bulk aggregator execution regained share, and mortgage servicing rights values increased despite flat primary rates, the report said.
“December’s secondary data shows lenders actively recalibrating execution as spreads widened and pricing discipline remained tight,” Vough noted. “The shift back toward bulk aggregation, combined with stable top-tier pricing and rising MSR values, reflects investor demand that is focused on end-of-year balance sheet management and long-term value.”
Other findings from the report include:
Refinance share expands: Refinances accounted for 37% of all locks in December, up 224 basis points month over month and 1,354 basis points year over year. Rate-and-term refinance volume increased 13% month over month and more than 170% year over year, while cash-out refinances rose 1% MoM and 35% year over year. Overall refinance pull-through improved 194 basis points from November to 69.2%.
Purchase market remains resilient: Purchase locks slipped just 1% month over month despite typical holiday-driven seasonality and finished December 7% higher than a year earlier. Pull-through for purchase loans increased 199 basis points month over month to 85.7%.
Non-QM sets another record: Non-qualified mortgage production maintained its upward trajectory, finishing December above 9% of locks, up 50 basis points month over month.
