Optimal Blue data shows February rate locks up 9% from January

"February's data shows the market settling into a healthier balance between purchase and refinance activity as rates moved lower. Purchase demand is back after a slow start to the year, but refinance share is still running at 41%, which is higher than anything we saw between early 2022 and late last year."

"Mortgage rates declined across major loan products during the month. The Optimal Blue Mortgage Market Indices' 30-year conforming fixed rate ended February at 5.90%, down 17 basis points from January. Rates for jumbo loans and U.S. Department of Veterans Affairs mortgages each fell by 11 bps, while rates for Federal Housing Administration products declined by 13 bps."

"In an environment like this, lenders are paying close attention to how they execute and manage risk. We're seeing more active positioning across delivery channels and servicing assets as lenders balance near-term pricing with longer-term portfolio value."

February mortgage market data reveals a shift toward healthier balance between purchase and refinance activity as rates declined. Purchase locks increased, pushing refinance share down to 41% from 44% in January, though refinancing remained elevated with rate-and-term refi locks up 3% month-over-month and 280% year-over-year. Cash-out refi volume increased 1% from January and 34% annually. Mortgage rates fell significantly across products: the 30-year conforming fixed rate declined 17 basis points to 5.90%, jumbo and VA rates fell 11 basis points, and FHA rates dropped 13 basis points. The 10-year Treasury yield fell nearly 30 basis points to 3.97%. Secondary market execution shifted as pricing spreads widened and lenders adjusted delivery strategies, with more hedged loan sales moving toward agency cash windows.

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