Interest-rate-lock mortgage commitments in the first quarter grew by 27% Q/Q, according to Curinos’ LendersBenchmark Analyzer. This growth comes despite persistently high rates and low housing inventory, and in a typically low-volume time of year.
While both agency and non-agency offerings grew, balance sheet lending continued its dominance across product segments. This nonconforming demand highlights the ongoing competitive advantage of depositories as rates reaccelerated in late January. Their Q/Q growth (+31%) well outpaced independent mortgage bankers (+23%). Still, the gains by IMBs were respectable, thanks in large measure to conforming locks, their largest and best-performing segment.
With average locked rates softening by 45 bp Q/Q, demand for refinancing also grew as a spike in rate-term and cash-out locks catalyzed prepayment activity and otherwise provided additional volume.
With the spring homebuying season upon us, the Q1 results signal that demand will continue despite elevated rates and supply-side constraints. Data can help FIs take advantage of this momentum by ensuring alignment with today’s market and revealing mortgage lending trends as they evolve.
Quarterly Performance Snapshot | Retail | Locks | Q124 vs. Q423
