June Mortgage Lock Volume Up 10% Per Optimal Blue

Total mortgage rate-lock volume increased by 10% in June compared to May and saw a 15% rise from the previous year, according to Optimal Blue’s June 2026 Market Advantage report released on Thursday. This growth indicates a strengthening mortgage market as lenders continue to adapt to sustained higher interest rates. Purchase mortgage demand was a primary driver, with purchase lock volume climbing 10% month-over-month and 14% year-over-year, reaching its highest point since early spring. Purchase loans constituted over 81% of all rate locks during June.

Refinance activity remained stable, accounting for 19% of the total lock volume. Within refinancing, cash-out refinance volume experienced an 11% increase from May and a 10% rise from the prior year. Rate-and-term refinances also saw growth, with a 6% increase month-over-month and a significant 32% jump year-over-year. Mike Vough, Optimal Blue’s senior vice president of corporate strategy, stated that June's market performance was characterized by strengthened purchase demand, stable refinance activity, and improved pull-through rates, suggesting a market that has successfully adapted to a "higher-for-longer" rate environment.

The report also highlighted shifts in loan composition. Conforming mortgages represented 49% of total production in June, marking the second consecutive month below the 50% threshold. Non-conforming loans increased to over 19% of production, their highest share in several years, while non-qualified mortgages accounted for 9% of total lock volume, a 1.4 percentage point increase from the previous year. Government-backed lending remained a substantial segment, with Federal Housing Administration (FHA) loans comprising nearly 19% of production and U.S. Department of Veterans Affairs (VA) loans making up almost 13%.

Mortgage rates saw minimal change throughout June. The 30-year conforming fixed rate, as measured by Optimal Blue’s Mortgage Market Indices, rose by 1 basis point to 6.45%. This rate, however, remained 22 basis points higher than the rate observed a year prior, underscoring the persistent impact of interest rate levels on borrower behavior and market dynamics.