ICE Mortgage Monitor: Highest Quarterly Mortgage Volume Since 2022 Fueled by Purchase and Cash‑Out Refinances
Introduction
The latest ICE Mortgage Monitor, released August 11, 2025, shows U.S. mortgage lending hitting its strongest quarterly volume since 2022. The report highlights a rebound that is being driven not only by purchase activity but also by a notable increase in cash‑out refinances. The development marks a meaningful shift in activity patterns after a period of rate‑driven dormancy in parts of the mortgage market.
Key findings from the ICE Mortgage Monitor
ICE’s quarterly review reports that overall mortgage volume returned to levels not seen since 2022, with two principal contributors identified by the monitor: higher purchase lending and a renewed wave of cash‑out refinancings. While ICE’s public summary frames the change as a “quiet” uptick, the combination of renewed homebuying demand and homeowners tapping equity has added measurable momentum to mortgage originations.
Purchase lending rebounds
Purchase activity has moved higher after a period of lethargy. Improved affordability in certain markets — where home prices have stabilized or where local inventory has grown — along with a segment of buyers responding to slightly lower long‑term yields, helped lift purchase loan volume. For lenders and agents, that translated into more application flow and a steadier pipeline of purchase originations during the quarter.
Cash‑out refinances pick up
ICE identifies cash‑out refinances as a key driver of the rise in overall lending. Homeowners appear to be refinancing to access home equity for a variety of uses, including debt consolidation, home improvements and other household needs. The trend toward cash‑out refis often broadens the borrower pool because it attracts homeowners who are current on their mortgages and want to convert illiquid home equity into cash while taking advantage of the prevailing mortgage environment.
Why homeowners are choosing cash‑out refinances now
Several dynamics help explain the uptick in cash‑out activity:
- Equity accumulation: Homes that appreciated during the earlier stages of the market cycle left many borrowers with substantial equity, making cash‑out refinances feasible without overstretching loan‑to‑value limits.
- Purposeful use of proceeds: Borrowers are using funds for home projects, consolidating higher‑cost debts (for example, credit cards), or funding life events — motives that have historically driven cash‑out demand.
- Rate and term considerations: Some borrowers see an opportunity to refinance into a rate and term that better suits their financial goals while simultaneously drawing cash out.
What this means for borrowers and the refinance market
For homeowners weighing refinance options, an environment with rising cash‑out activity has both practical and strategic implications. On the positive side, more active cash‑out markets typically mean lenders are more willing to price and structure such transactions, widening consumer choices. That said, cash‑out refinances increase outstanding mortgage balances and, for some homeowners, may extend the amortization schedule or change monthly payment dynamics.
Borrowers should consider the tradeoffs carefully: the immediate benefit of liquidity versus long‑term interest costs and the possibility of higher principal outstanding. As always, individual decisions depend on personal financial goals, the intended use of proceeds, and the comparison between current rates and the homeowner’s existing loan.
Implications for lenders, servicers and investors
The ICE report’s findings create several implications across the mortgage ecosystem:
- Lenders: Higher purchase volume and cash‑out demand can boost origination pipelines but also require disciplined underwriting to manage credit risk as balance sizes grow.
- Servicers: Cash‑out refi activity can change prepayment profiles; servicers and portfolios may see shifts in cash flows as borrowers refinance or increase balances.
- Investors and RMBS markets: A rise in cash‑out refis and purchase originations alters prepayment speeds and collateral characteristics. Investors will be watching seasoning, credit mix and how production channels price risk going forward.
What to watch next
Several factors will determine whether the increased quarterly volume is a sustained recovery or a temporary spike:
- Interest rate trajectory: Further rate declines would likely support more rate‑and‑term and cash‑out refinances; upward moves could curtail refinance activity.
- Housing market fundamentals: Inventory, home‑price dynamics and local housing demand will influence purchase volumes over coming quarters.
- Regulatory and underwriting shifts: Any changes to borrower eligibility rules or investor appetite for certain loan types could reshape activity patterns quickly.
Why it matters
The ICE Mortgage Monitor’s finding that mortgage lending volume reached its highest quarterly level since 2022 matters because it signals renewed activity across both purchase and refinance channels. For consumers, the shift translates into expanded lender options and more potential to use home equity. For market participants — lenders, servicers and investors — the trend affects pipeline management, prepayment expectations and portfolio risk profiles. In short, the report highlights that the mortgage market is once again dynamic, and participants should recalibrate assumptions about volume, credit and cash‑flow behavior accordingly.
