Despite the improving rate environment, mortgage rate lock volume dropped 10% in November, with purchase locks falling 12%, cash-out refis remaining flat and rate/term refis increasing 10%, according to Optimal Blue’s Originations Market Monitor.
Most MSAs experienced declines in rate lock volume.
The 30-year conforming rate dropped 67 basis points to finish the month at 7.11%, as per Optimal Blue’s data.
The spread between the 30-year conforming rate and 10-year Treasury narrowed to the lowest level since March.
The average purchase price saw the largest decline since October 2022, falling from $449,300 to $438,300 – possibly signaling a trend in falling prices.
Nonconforming products gave up share in November, while FHA products lifted to 23% of total production.
The report reviews a series of key market indicators to help provide clarity on mortgage lending activity. By drawing information directly from origination pipelines, it provides a comprehensive and timely view into origination activity.
Photo: Georg Bommeli