FHA loans drive mortgage lock volume up, but delinquencies and foreclosures also rise.

In April 2025, total mortgage lock volume rose by 3.2% and purchase locks increased by 7.5%, driven by a surge in FHA loans despite economic pressures. The report from Optimal Blue indicates a shift towards FHA loans and away from non-agency lending, reflecting investor caution. Meanwhile, mortgage delinquencies reached 4.04% of all outstanding loans in Q1 2025, up 6 basis points from the previous quarter, with foreclosure starts increasing by 5 basis points to 0.2%.