Major Mortgage Lenders Report Strong Start For 2026 Originations Activity

Mortgage lenders are entering the 2026 spring homebuying season with strengthening business pipelines, fueled by lower mortgage rates, rising refinance incentives and early signs of improving purchase demand.

“We’re off to a great start,” Alex Elezaj, executive vice president and chief strategy officer for United Wholesale Mortgage (UWM) said in an interview with HousingWire. “Spring is traditionally a strong season for homebuying. We expect this year to be no different. Right out of the gate in January and early February, we’re experiencing great volume.”

Elezaj’s comments signal that lower mortgage rates and improving borrower sentiment may be meaningfully driving activity after two years of rate-driven housing market constraints. He said falling mortgage rates in early 2026 have already sparked an increase in refinancing activity, while purchase demand has remained resilient.

“As the rates have dropped, we’ve seen a big uptick in refis,” he said. “But also, purchases have remained very strong. We’re kind of getting the best of both worlds.”

Bob Johnson, head of originations at Newrez, is also seeing early-cycle momentum following years of suppressed origination volume.

“Rates are probably about 80 basis points (bps) or so lower this year versus where they were at the same time last year,” Johnson said. “Certainly this year is more active than it was the same time last year … We’re definitely seeing demand there for folks that can save a few bucks on their mortgage.”

Johnson says Newrez aligns its production goals with forecasts from the Mortgage Bankers Association and Fannie Mae. So far, activity in 2026 at Newrez is far above the same time last year, he confirmed. 

Elezaj said even modest rate declines can prompt borrowers to act. Some homeowners refinance after a 25-bps drop — particularly those with larger loan balances — while others wait for reductions closer to 50 bps.

A large pool of borrowers who obtained mortgages in the mid-6% to 7% range in recent years now have opportunities to lower their payments if rates decline further, he added.

While Elezaj declined to predict specific rate movements, he said current economic data support lower rates over time and lenders are preparing for a possible surge in demand.

UWM currently averages about 12 days from loan submission to clear-to-close, he said, and it has invested in staffing and technology to handle increased volume. Elezaj pointed to the company’s artificial intelligence platform, MIA, which proactively contacts borrowers when rates fall.

“When rates dropped recently, MIA made 35,000 calls in a single day,” he said. “She’s working 24/7, 365 to identify where consumers can benefit from rate drops.”

David Battany, EVP of capital markets for Guild Mortgage, said the rate “zigzag” that has characterized the housing market over the past year is now on the low end, a fact he calls “encouraging.”

“Right now, activity is typical for this time of year,” Battany said. “And even though it’s one of the worst markets ever for first-time homebuyers, half of our purchase loan pipeline is first-time homebuyers. We do think — with all the headwinds, difficulties, problems, average ages and everything else — that in 2026, there will be sizable amounts of first-time homebuyers on the market.”

Scott Bridges, chief consumer direct production officer at Pennymac, says he sees borrower motivation increase when rates start nearing the low fives. But, he also sees the lock-in effect beginning to thaw.

“The ‘life event’ buyer will be the strongest segment this spring. The lock-in effect is beginning to thaw; people can only put their lives on hold for so long, and many who waited out 2024 and 2025 are ready to start transacting,” he said.

Trending products

While investor-focused products such as debt-service-coverage ratio (DSCR) loans have gained attention in recent years, Elezaj said conventional mortgages backed by Fannie Mae and Freddie Mac are likely to remain UWM’s primary driver of volume.

Elezaj said elevated home equity levels are also prompting some homeowners to refinance or tap equity to consolidate higher-interest debt.

“With people paying high interest rates on their credit cards, there’s an opportunity to use that equity to pay down household debt,” he said.

Johnson said rates may need to fall into the mid-5% range to trigger substantial activity, but he has noticed growing interest in adjustable-rate mortgages (ARMs) as borrowers wait for lower rates.

Bridges agrees and says buyers are gravitating toward government products, as both FHA and VA offer lower down payment options. “On the conventional side, there is definite appeal to ARM products that have 5, 7 and 10-year fixed terms with lower interest rates and payments.”

Nicole Rueth, leader of The Rueth Team at CrossCountry Mortgage, said she’s noticed buyers are showing renewed confidence after years of pandemic-driven caution. 

“We’re off the bottom,” Rueth said. “We’ve got more seller concessions than we’ve seen in a long time, there’s still an abundance of inventory in many metros, and home values have flattened while wages have increased. That’s giving buyers more affordability and encouraging positive sentiment.”

Rueth, who is based in the Denver area, said that the spring market will teach loan officers the importance of creative financing to unlock demand.

“If you can get a buyer into a rate with a five handle, even 5.99%, I’m using seller concessions. My whole goal is to make that work no matter the credit score or purchase price, just to get them into the five range,” Rueth said.

Rueth says she’s noticing trends like buy-before-you-sell programs and non-QM loans. Given her proximity to Denver, she’s also been doing a lot of jumbo loans. 

Timing the market

Executives say that they watch broader economic and geopolitical signals to gauge borrower behavior. Johnson noted that his team uses the Super Bowl as a “line in the sand” for when originations should begin rising. And Elezaj said that news such as the potential appointment of Kevin Warsh as Federal Reserve chair can influence activity even before rates move.

“These types of stories just drive activity,” Elezaj said. “People expect that rates will come down. We expect that change is going to happen, and people will start focusing more on refinances and purchasing homes.”

Rueth said she uses the signals to educate her team and borrowers.

“I’m trying to educate both my buyers and my real estate agents on how to almost read the tea leaves,” she said. “(It’s about) what’s happening on the larger landscape that is ultimately going to affect not only interest rates, but possibly inventory — and even more, probably consumer outlook and the consumer psyche on whether or not they’re confident enough to take the leap.”