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Optimal Blue report: Mortgage demand slips below year-ago levels as rate-and-term refi activity plunges
Rate-and-term refinance volume dropped 47% from a year earlier as rates stayed elevated, even though purchase activity remained above last year, Optimal Blue said.
- On Tuesday, Optimal Blue released its August 2026 Market Advantage report, showing total mortgage rate-lock volume fell 9% from July and slipped 3% below August 2025 levels.
- Although 30-year conforming fixed rates leveled off at 6.72% in August, rate-and-term refinance volume dropped 47% from a year earlier, leaving insufficient refi demand to support broader market activity.
- Purchase loans accounted for nearly 81% of total lock volume and remained 6% higher year over year; the average locked loan amount decreased nearly 2% to $388,000.
- "We saw a mixed secondary-market picture in August," said Mike Vough, Optimal Blue's senior vice president of corporate strategy, citing tighter execution spreads alongside deterioration in top-tier execution share.
- The 30-year conforming fixed rate is forecast at 6.74% over the next month and 6.82% over three months before easing to 6.51% over the next 12 months.
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11 Articles
11 Articles
Santa Maria Times+9 Reposted by 9 other sources
Optimal Blue report: Mortgage demand slips below year-ago levels as rate-and-term refi activity plunges
Execution spreads tighten as hedge mix shifts and MSR values rise
·Calhoun, United States
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Total News Sources11
Leaning Left3Leaning Right1Center6Last UpdatedBias Distribution60% Center
Bias Distribution
- 60% of the sources are Center
60% Center
L 30%
C 60%
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