Story perspectives

Mortgage Locks Drop as Refinances Surge Amid Rate Changes

9/12/2025

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Summary

Story summary

In August 2025, mortgage lock volume fell by 1.8%, primarily due to a 10% decline in purchase locks, despite a nearly 70% increase in rate-and-term refinances.
Non-QM lending reached a record 8.3% of originations, up from 5.6% the previous year, showing changing borrower preferences.
The average 30-year mortgage rate decreased to 6.49%, boosting refinancing activity.
Agency cash window deliveries dropped to 24%, while agency MBS executions increased to 40%, indicating greater securitization by lenders.
Lenders are strategically adapting to optimize execution and enhance profitability amid evolving market conditions.

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Story summary

In August 2025, mortgage lock volume fell by 1.8%, primarily due to a 10% decline in purchase locks, despite a nearly 70% increase in rate-and-term refinances.
Non-QM lending reached a record 8.3% of originations, up from 5.6% the previous year, showing changing borrower preferences.
The average 30-year mortgage rate decreased to 6.49%, boosting refinancing activity.
Agency cash window deliveries dropped to 24%, while agency MBS executions increased to 40%, indicating greater securitization by lenders.
Lenders are strategically adapting to optimize execution and enhance profitability amid evolving market conditions.