Refinance

Rate-and-term refinances dropped 14% month over month in October, but were still up 143% from last year.

The number of highly qualified refinance candidates rose to 1.7 million, the most in three and a half years, as mortgage rates ease.

Despite the decrease, average profit margins approached 50%, as the lock-in effect continues to stymie inventory growth and keep home values elevated.

Rate-and-term transactions leaped by 154% from August to September, while cash-outs and purchase loans also increased, according to Optimal Blue.

Total mortgage origination volume is forecasted to barely eclipse $2 trillion by the end of the year for the first time since 2022, iEmergent said.

A pickup in refinances was offset by the first pullback in purchases in four weeks in the run-up to Labor Day, according to the Mortgage Bankers Association.

While borrowers took advantage of rate dips to refinance, purchases declined year over year, showing obstacles still standing in the way of a market turnaround.

Gen Z and Millennial homeowners also face unexpected expenses after closing, underscoring need for more education on the part of mortgage professionals.

As mortgage rates dip, more homeowners are turning to cash-out refis for quick access to cash, ICE says.

The mortgage numbers are a welcome boost to a market that has struggled to overcome high costs and prolonged economic uncertainty.

As high interest rates make refinancing impossible for many homeowners, increasing numbers of them are turning to HELOCs and home equity loans for cash.

While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.

Refinance apps made up more than 40% of all mortgage applications last week, driving an uptick as consumers seek out cheaper mortgage payments.

Mortgage applications rose 12.5% from last week, breaking a month-long streak of decline and offering a positive note as summer approaches.

Government-backed lending drove an increase in purchase mortgages for a second straight week, even as interest rates failed to drive refinance activity.

The latest refinance surge helped lift total application activity up for a second straight week, even as purchases fell, the Mortgage Bankers Association said.

Lenders increased offerings in jumbo and non-QM segments as the industry focuses on customers with strong credit, the Mortgage Bankers Association said.

Rejections for mortgage credit outpaced almost every other borrowing category, according to the Federal Reserve Bank of New York.