Optimal Blue Sees June Mortgage Lock Volume Up 10%

Purchase mortgage demand gained momentum in June as overall mortgage rate-lock activity increased and lenders continued adjusting to a higher interest rate environment, according to Optimal Blue’s June 2026 Market Advantage report, released Thursday.

The report found total mortgage rate-lock volume increased 10% from May and 15% from a year earlier. Purchase lock volume rose 10% month over month and 14% year over year, reaching its highest level since early spring. Purchase loans accounted for more than 81% of all rate locks during the month.

Refinance activity also remained stable, with refinances representing 19% of total lock volume. Cash-out refinance volume increased 11% from May and 10% from a year earlier, while rate-and-term refinances rose 6% month over month and 32% year over year.

“June wasn’t defined by a single headline number. Purchase demand strengthened, refinance activity held up and pull-through improved after softening in May,” Mike Vough, Optimal Blue’s senior vice president of corporate strategy, said in a statement. “Together, those trends point to a market that is battle-tested and that has adapted to a higher-for-longer rate environment.”

The report also showed continued changes in loan composition. Conforming mortgages accounted for 49% of total production in June, remaining below the 50% threshold for the second consecutive month. Non-conforming loans grew to more than 19% of production, their highest share in several years, while non-qualified mortgages represented 9% of total lock volume, up 1.4 percentage points from a year ago.

Government-backed lending remained a significant portion of the market, with Federal Housing Administration (FHA) loans making up nearly 19% of production and U.S. Department of Veterans Affairs (VA) loans accounting for almost 13%.

Mortgage rates were little changed during the month. Optimal Blue’s Mortgage Market Indices 30-year conforming fixed rate rose 1 basis point to 6.45%, though it remained 22 basis points below its level a year earlier. The yield on the 10-year Treasury note ended June at 4.44%, down 1 basis point from May, widening the spread between the Treasury yield and the 30-year conforming mortgage rate to 201 basis points.

On the secondary market, agency mortgage-backed securities executions declined for a second straight month, falling to 40% of funded loan sales, while best-efforts executions increased to 3%.

“We saw lenders continue to fine-tune execution strategy in June,” Vough said. “Agency MBS executions declined again while best-efforts activity increased, showing that lenders are evaluating all potential loan sale options.”

The report also found signs of improving borrower performance. Purchase pull-through rates rose to 81.4% after declining in May, while refinance pull-through increased to 71.1%.

First-time homebuyers accounted for 45% of conforming purchase locks, nearly 3 percentage points higher than a year earlier. Average debt-to-income ratios remained below 2025 levels across conforming, FHA and VA loans, while the average borrower credit score held steady at 731.

The average locked loan amount increased to just over $399,000, approaching record highs as home prices continued to appreciate and purchase activity remained concentrated in higher-cost markets.

This article was generated using HousingWire Automation and reviewed by a HousingWire editor before publication.