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Mortgage-rate-lock volume<\/a> fell 20% in September, led by a combination of seasonal decline in purchase activity and rising interest rates, according to Optimal Blue<\/a><\/strong>\u2019s Originations Market Monitor report. <\/p>\n September\u2019s rate-lock decline continues a four-month trend of falling mortgage volumes, with month-over-month purchase locks down 20%, cash-outs down 17% and rate\/term refinances down 18% in September. Total loan volume fell 33% over the same period compared to a year ago.<\/p>\n \u201c\u201cThe refi share of total lock volume ticked slightly higher from 12% to 13%, primarily as a result of seasonal purchase declines. Cash-out volumes continue to be the lion\u2019s share of refis at roughly double that of rate\/term volumes, with virtually no mortgages in the money to refinance,\u201d Scott Smith, interim CEO of Optimal Blue, said.<\/p>\n Purchase lock counts \u2013 which exclude the impact of rising home prices<\/a> \u2013 were down 32% year over year, and 39% from pre-pandemic levels in 2019.<\/p>\n While conforming loans still made up the majority of production at 57% in September, conforming volumes trended well below pandemic levels, according to the report. <\/p>\n FHA and VA loan production both gained in activity share to 20.6% and 10.4%, respectively. The lock-production share of nonconforming loans \u2013 including both jumbo and expanded guideline loans \u2013 grew in September to comprise 11.1% of the total.<\/p>\n The average loan amount increased to $353,000 in September while the average purchase price on locked loans remained the same at $450,000.<\/p>\n The 30-year conforming fixed rate<\/a> rose 33 basis points during the month to close at 7.41%, according to the Optimal Blue Mortgage Market Indices<\/a>. Rates for FHA loans<\/a> averaged 7.18%, VA loans<\/a> were 7% and jumbo loans were 7.6%.\u00a0<\/p>\n The 30-year, conforming rate spread to the 10-year Treasury yield narrowed 17 basis points, with the 10-year ending September at approximately 4.6% \u2013 nearly 40 basis points above the highs set last fall.<\/p>\n \u201cAs the market reacted to the Fed\u2019s \u2018higher for longer\u2019 message<\/a>, we saw mortgage rates pushed to multi-decade highs in September,\u201d Smith noted. \u201cWe also continue to see average credit scores remaining high, suggesting tight credit availability and a relatively small cohort of buyers who can make a purchase in this historically unaffordable environment.\u201d<\/p>\n