November mortgage locks driven by strong refinance activity

"Purchase locks dropped 22% from October and 6% year over year as high home prices and low inventory levels continued to curb demand, according to the report. The Optimal Blue Mortgage Market Indices (OBMMI) 30-year conforming fixed rate the benchmark for CME Group's mortgage rate futures edged down 1 basis point to 6.14% in November, a 53-pbs improvement from a year earlier. Federal Housing Administration (FHA) rates fell to 5.99%, while U.S. Department of Veterans Affairs (VA) and jumbo rates rose to 5.76% and 6.44%,"

"Meanwhile, the 10-year Treasury yield slipped to 4%, widening the mortgage rate spread by about 10 bps as the OBMMI held steady. November's data underscores a market still responding to rate relief even as seasonal patterns take hold, said Mike Vough, senior vice president of corporate strategy at Optimal Blue. Refinances remain the clear standout, with rate-and-term activity running more than triple last year's levels and cash-outs continuing to outperform. It was a notably strong November by any measure."

Purchase activity weakened with locks down 22% from October and 6% year-over-year amid high home prices and low inventory. The OBMMI 30-year conforming fixed rate edged down to 6.14% in November, improving 53 basis points from a year earlier; FHA rates fell to 5.99% while VA and jumbo rates rose. The 10-year Treasury yield slipped to 4%, widening mortgage spreads. Refinances accounted for 35% of locks, with rate-and-term activity running more than triple last year's levels and strong cash-outs. Agency MBS deliveries and aggregator shares declined, top-tier pricing share softened to 79%, MSR values fell to 1.09%, and non-QM products reached a record 9% share.

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