PLANO, Texas — Mortgage activity accelerated in June, with purchase lending reaching its strongest level since early spring and overall rate-lock volume increasing both month over month and year over year, according to a new report from mortgage technology company Optimal Blue.
The company’s June 2026 Market Advantage report found total mortgage rate-lock volume increased 10% from May and was up 15% from June 2025. Purchase lock volume rose 10% month over month and 14% year over year, while refinance activity remained relatively stable, according to Optimal Blue.
“June wasn’t defined by a single headline number,” Mike Vough, senior vice president of corporate strategy at Optimal Blue, said in the report. Purchase demand strengthened, refinance activity remained resilient and loan pull-through rates improved after softening in May, he said, adding the data suggest the mortgage market has adapted to a prolonged higher-interest-rate environment.
Purchase Lending Leads Growth
According to Optimal Blue:
- Purchase loans represented more than 81% of all mortgage locks in June.
- Refinance loans accounted for 19% of total lock volume, well above levels seen through much of 2025.
- Cash-out refinance volume increased 11% from May and 10% from a year earlier.
- Rate-and-term refinances rose 6% month over month and 32% year over year.
The report also showed continued shifts in loan types.
- Conforming mortgages accounted for 49% of production for the second consecutive month, remaining below the 50% threshold after first dipping below it in April.
- Non-conforming loans expanded to more than 19% of total production, their highest share in several years.
- Non-qualified mortgages represented 9% of total lock volume, up 1.4 percentage points from a year earlier.
- FHA loans accounted for nearly 19% of production, while VA loans represented almost 13%.
Rates Mixed; Mortgage Spread Widens
Optimal Blue said its benchmark 30-year conforming fixed mortgage rate increased 1 basis point during June to 6.45%, remaining 22 basis points below the level recorded one year earlier.
The 10-year Treasury yield ended June at 4.44%, down 1 basis point from May, while the spread between the Treasury yield and the 30-year conforming mortgage rate widened to 201 basis points.
The report also found mortgage servicing rights for conforming 30-year loans declined to 1.33%, while pricing spreads narrowed for conventional loans but widened for government-backed mortgages.
Secondary Market Strategy Continues to Shift
Optimal Blue said lenders continued adjusting how they sold loans into the secondary market.
Among the findings:
- Agency mortgage-backed securities executions declined for a second consecutive month to 40% of funded loan sales.
- Best-efforts executions increased from 2% to 3%.
- Investor participation held steady at 14 investors for a second straight month.
Vough said the data indicate lenders continue evaluating execution strategies on a product-by-product basis as market conditions evolve.
Borrowers Show Stable Credit Profiles
The report also found:
- First-time homebuyers represented 45% of conforming purchase locks, nearly three percentage points higher than a year earlier.
- Average debt-to-income ratios remained below 2025 levels across conforming, FHA and VA borrowers.
- The average borrower credit score held steady at 731 nationally, with conforming borrowers averaging 753.
- Purchase loan pull-through improved to 81.4%, while refinance pull-through rose to 71.1%.
- The average locked loan amount climbed to just over $399,000, approaching record highs as home prices continued to appreciate, according to Optimal Blue.
The full report can be found here.
