Optimal Blue’s February Market Advantage report showed a 7 percent month-over-month increase in mortgage lock volume, primarily driven by refinance activity.
Rate-and-term refinances saw a 40 percent jump from January as homeowners took advantage of the opportunity to lower their monthly payments. Cash-out refinances increased 4 percent month-over-month, while purchase lock activity held steady.
“Interest rate improvement, while marginal, is attracting refinance activity as homeowners who bought at higher rates work the numbers and find they can reduce their monthly payments or tap into home equity,” Optimal Blue Data Solutions Director Brennan O’Connell said. “The upcoming homebuying season will reveal whether purchase demand is poised for a rebound or if elevated rates will continue to keep buyers on the sidelines.”
Other findings from the February Market Advantage report, based on direct-source mortgage lock data, included:
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