HousingWire Daily Mike Vough on using tech to take advantage of refi opportunities
Oct 22, 2025
Join Mike Vough, Head of Corporate Strategy at Optimal Blue, as he dives into the recent surge in refinance opportunities driven by a 50-basis-point rate drop. He discusses the psychological barriers borrowers face around interest rates and the challenges lenders encounter in retaining these clients. Vough emphasizes how technology enhances speed and accuracy in lending processes, making outreach more effective. He also shares insights on tools that enable loan officers to provide tailored mortgage advice and previews exciting developments at Optimal Blue.
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Rate Drop Reveals Pent‑Up Refi Demand
- A ~50 basis-point drop in mortgage rates sparked refinance share growth from 26% to nearly 40% in a month.
- Mike Vough says this shows strong pent-up refi demand as borrowers exit the sidelines.
The 5% Psychological Refi Threshold
- In 2024, 80% of loans carried rates below 5%; that share eased toward 70% in 2025.
- Vough argues crossing the '5%' psychological barrier will accelerate refinance activity.
Servicing Sales Undermine Retention
- Roughly 40–50% of loans are sold released, meaning originators often lose servicing rights.
- Vough links high servicing release rates to low originator retention and missed lifetime relationships.