PLANO, Texas, Feb 10, 2026 (SEND2PRESS NEWSWIRE) — Optimal Blue today released its January 2026 Market Advantage mortgage data report, showing a strong start to the year as falling rates drove a sharp increase in refinance activity. Total rate-lock volume rose 16% month over month (MoM) and finished January 36% higher year over year (YoY), led by a surge in rate-and-term refinances, which climbed 50% from December and more than 400% compared with January 2025. Cash-out refinance activity also increased, rising 11% MoM and 38% YoY. Purchase volume grew a modest 3% from December but remained down 5% from a year earlier, reflecting the slower response of purchase demand to changing rate conditions early in the year.
Mortgage rates moved lower across most products in January. The Optimal Blue Mortgage Market Indices (OBMMI) 30-year conforming fixed rate, the benchmark for CME Group’s Mortgage Rate futures, declined 7 basis points (bps) to 6.07%. Jumbo rates fell 16 bps to 6.25%, VA rates declined 7 bps to 5.64% and FHA rates were largely unchanged at 5.99%. The average locked rate on the Optimal Blue PPE fell below 6% for the first time since August 2022.
“January’s data shows just how quickly refinance demand can respond when rates move lower,” said Mike Vough, senior vice president of corporate strategy at Optimal Blue. “It’s been more than three years since the market last saw average rates with a ‘5 handle,’ and crossing back below that level appears to have released meaningful pent-up refinance demand. Purchase activity is responding more gradually, which is typical this early in the year, but the shift in borrower behavior is clear.”…