Mortgage rate locks stay strong, refis drive activity

Rate-lock activity remained resilient in October despite seasonal cooling, according to Optimal Blue’s October 2025 Market Advantage Mortgage Data Report.

Total lock volume declined 4.2% from September but remained 18% higher than a year earlier as borrowers responded to improving affordability and narrower rate spreads.

Purchase locks slipped 1.5% month-over-month — in line with normal seasonal trends — while refinancing continued to fuel growth.

Rate-and-term refinances fell 14% from September but were up 143% from a year earlier.

Cash-out refinances increased 6% month-over-month and 29% year-over-year, the report showed.

The Optimal Blue Mortgage Market Indices (OBMMI) 30-year conforming fixed rate fell 16 basis points to 6.16%, its lowest level since late 2023.

“October’s data speaks to the market’s resilience,” said Mike Vough, head of corporate strategy at Optimal Blue. “Purchase activity held steady and refinance demand — particularly cash-outs — remained strong. Even after September’s record pace, October delivered another standout month for originations.”

Lenders also strengthened execution strategies in the secondary market.

Sales to agency mortgage-backed securities climbed to 46%, up 400 basis points, while deliveries to the agency cash window fell to 30%.

Aggregator bulk and best-efforts channels each declined 100 basis points. The share of loans sold at the highest pricing tier rose to 81%, reflecting improved pricing even as servicing values tightened.

Mortgage servicing rights for conforming 30-year loans rose 3 basis points (bps) to 1.12% (a 4.47 multiple) — moving in line with an average 6-bps monthly increase across OBMMI rates.

“October’s secondary market data reflected clear strength in execution,” said Vough. “Lenders leaned further into MBS sales and maintained access to top-tier pricing, signaling disciplined hedging and growing investor confidence. With securitization share and pricing quality both on the rise, large lenders appear well positioned to sustain profitability as production remains steady.”

Additional findings from the report include:

• Refinance share: Refinances made up 37% of total production, down 176 basis points from September but 11 points higher year over year. Pull-through rates improved for both purchases (84.6%) and refinances (71.6%).
• Non-QM and FHA gains: Non-qualified mortgage programs, FHA and conforming loans increased market share, while VA activity declined after a September surge.
• Rates and spreads: Mortgage rates fell across categories — FHA 6.04%, VA 5.67%, jumbo 6.36% — and the spread to the 10-year Treasury narrowed 11 bps to about 200 bps, the tightest since early 2022.
• Borrower metrics: Average credit score slipped to 734, and average loan amount declined to $397,438. Debt-to-income ratios and first-time-buyer share were unchanged.