ASX-Dividend-Report-Banner

December Mortgage Lock Data Reveals Year Over Year Increases Across All Loan Types Despite Seasonal Downturn

January 14, 2025 10:00 PM AEDT | By Send2Press
 December Mortgage Lock Data Reveals Year Over Year Increases Across All Loan Types Despite Seasonal Downturn
Image source: Send2Press

PLANO, Texas, Jan. 14, 2025 (SEND2PRESS NEWSWIRE) — Optimal Blue today released its December 2024 Market Advantage mortgage data report, showcasing year-over-year (YoY) growth in mortgage activity, even as seasonal trends led to a month-over-month (MoM) decline in rate lock volumes. Overall, December mortgage lock volume was up 26% YoY, driven by an 18% increase in purchase locks, a 43% rise in cash-out refinances, and an 82% jump in rate-and-term refinances.

Optimal Blue December 2024 Market Advantage report
Image caption: Optimal Blue December 2024 Market Advantage report.

“December’s data illustrates how the market can adapt to shifting conditions,” said Brennan O’Connell, director of data solutions at Optimal Blue. “While a seasonal dip was expected, the year-over-year growth reflects resilience and an increasing demand for refinance opportunities driven by rate adjustments. Notably, conforming loan share has hovered around historic lows for the past five months, hitting 51% last month. This trend illustrates how borrowers are relying increasingly on government and non-conforming loans to finance in a challenging market.”

Key findings from the Market Advantage report, derived from direct-source mortgage lock data, include:

  • Rates fluctuate, ending December higher: After initial declines, rates rose throughout the month. The Optimal Blue Mortgage Market Indices (OBMMI) 30-year conforming rate ended December at 6.83%, up 16 bps from the end of November. FHA and VA rates followed suit, rising 14 bps and 18 bps, respectively. Jumbo rates fell slightly, ending just below 7%.
  • Refinance activity spikes: The share of refinance locks climbed to 24%, the highest since September. Rate-and-term refinances surged 33% MoM, while cash-out refinances saw a 3% decline. Purchase volumes dropped 13% MoM, in line with seasonal norms, while cash-out refinances decreased 3%.
  • Production mix shifts continue: The conforming loan share dropped another 1.5% MoM to 51%, the lowest figure since Optimal Blue began reporting lock data in January 2018, marking continued movement away from GSE-eligible products. FHA, VA, and non-conforming loans gained ground, with FHA locks rising to 21%, VA at nearly 11.5%, and non-conforming loans at 16%.
  • Purchase credit quality hits seven-year high: Average homebuyer credit scores were higher each month in 2024 than the previous 72 months.
  • MoM credit trends are stable: Average credit scores for purchase and rate-and-term refinance locks fell by 2 points to 737 and 727, respectively. Cash-out refinance scores rose slightly, increasing by 2 points to 697.
  • Loan amounts plateau as home prices decline: The average loan amount rose by $500 to $376.9K, while average home purchase prices dropped $4.1K to $473.7K.

The full Market Advantage report, which provides more detailed findings and additional insights into U.S. mortgage market trends, can be viewed at: https://www2.optimalblue.com/wp-content/uploads/2025/01/OB_MarketAdvantage_MortgageDataReport_Dec2024.pdf

This month’s Market Advantage podcast features Shant Banosian, executive vice president of sales at Rate, as a guest commentator. Access the podcast: https://market-advantage.captivate.fm/listen.

About the Market Advantage Report

Optimal Blue issues the Market Advantage mortgage data report each month to provide early insight into U.S. mortgage trends. Leveraging lender rate lock data from the Optimal Blue PPE – the mortgage industry’s most widely used product, pricing, and eligibility engine – the Market Advantage provides a view of early-stage origination activity. Unlike self-reported survey data, mortgage lock data is direct-source data that accurately reflects the in-process loans in lenders’ pipelines.

Nothing herein shall be construed as, nor is Optimal Blue providing, any legal, trading, hedging, or financial advice.

About Optimal Blue

Optimal Blue effectively bridges the primary and secondary mortgage markets to deliver the industry’s only end-to-end capital markets platform. The company helps lenders of all sizes and scopes maximize profitability and operate efficiently so they can help American borrowers achieve the dream of homeownership. Through innovative technology, a network of interconnectivity, rich data insights, and expertise gathered over more than 20 years, Optimal Blue is an experienced partner that, in any market environment, allows lenders to optimize their advantage from pricing accuracy to margin protection, and every step in between. To learn more, visit https://OptimalBlue.com/.

News Source: Optimal Blue

To view the original post, visit: https://www.send2press.com/wire/december-mortgage-lock-data-reveals-year-over-year-increases-across-all-loan-types-despite-seasonal-downturn/.

This press release was issued by Send2Press® Newswire on behalf of the news source, who is solely responsible for its accuracy. www.send2press.com.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (“Kalkine Media, we or us”), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary.
The content published on Kalkine Media also includes feeds sourced from third-party providers. Kalkine does not assert any ownership rights over the content provided by these third-party sources. The inclusion of such feeds on the Website is for informational purposes only. Kalkine does not guarantee the accuracy, completeness, or reliability of the content obtained from third-party feeds. Furthermore, Kalkine Media shall not be held liable for any errors, omissions, or inaccuracies in the content obtained from third-party feeds, nor for any damages or losses arising from the use of such content.
Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyrighted to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have made reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.

This disclaimer is subject to change without notice. Users are advised to review this disclaimer periodically for any updates or modifications.

AU_advertise

Advertise your brand on Kalkine Media

Sponsored Articles


Investing Ideas

Previous Next
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.