Total mortgage lock volume increased 3.2% in April compared with March, driven mainly by an uptick in FHA loans, according to Optimal Blue’s April 2025 Market Advantage report.
Purchase locks increased 7.5% compared with the previous month, despite ongoing economic pressures, but were down 5% year-over-year.
Refinance activity fell in response to rising interest rates. Rate-and-term refis dropped 15% compared with March while cash-out refis dipped 3%. Refinance share fell to 21% in April, down from 25% in March.
Mortgage rates were volatile at the start of April – fluctuating between 6.48% and 6.98%, a 50-basis-point (bps) range.
The benchmark rate for a 30-year conforming fixed loan briefly fell below 6.5% for the first time since October 2024, the firm says, before climbing to end the month at 6.7%, about 10 bps above where it started.
Loan amounts fell slightly: The average loan amount declined to $387,500, down from $391,700, while the average purchase price slipped to $483,500, down from $486,900, Optimal Blue says.
Regional differences remain stark; average loan amounts ranged from $601,660 in the New York City metro area to $374,945 in greater Minneapolis.
“Last month’s report showed early signs of spring homebuyer activity, and April confirms the season is underway with a solid increase in purchase locks,” says Brennan O’Connell, director of data solutions at Optimal Blue, in the report. “We also saw a shift toward FHA loans, often used by first-time or credit-challenged buyers, and away from non-conforming products, possibly reflecting investor caution in response to broader economic uncertainty.”
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