Total mortgage lock volume decreased 25% in November compared with October but was up 17% compared with November 2024, buoyed by historically strong refinance demand and mortgage rates holding near 6%, according to Optimal Blue’s Market Advantage mortgage data report.
Refinances accounted for 35% of all locks in November. Rate-and-term refinances increased 223%, year over year, despite slowing from early fall peaks, while cash-out refinances increased 29%.
Purchase locks decreased 22% compared with October and were down 6% year-over-year, as elevated home costs and limited listings continued to weigh on demand.
Despite the decreases, it was the strongest November for overall activity in four years.
“November’s data underscores a market still responding to rate relief even as seasonal patterns take hold,” says 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.”
Lenders adjusted execution strategies in November as agency cash window sales rose 300 bps to 25%, interrupting the recent move toward greater securitization. Agency mortgage-backed securities (MBS) deliveries declined 100 bps to 45% after six consecutive months of gains, while bulk aggregator share dropped 300 bps to 27% and best-efforts executions increased 100 bps to 3%.
The share of loans sold at the highest price tier fell 200 bps to 79%, while second- and fourth-tier deliveries increased. Mortgage servicing rights (MSRs) for conforming 30-year loans decreased 3 bps to 1.09% (a 4.36 multiple), in line with an average 15 bps decline across other OBMMI rate series.
“Execution strategies shifted meaningfully in November,” says Vough. “Lenders moved to the cash window as securitization momentum moderated, and pricing spreads broadened as more loans moved out of the top tier. These shifts point to lenders fine-tuning execution to manage price and overall delivery profile as the market settles into late-year conditions.”
Photo: The Blowup