Welcome to this month’s episode of the Market Advantage podcast by Optimal Blue, where we analyze mortgage lock data from November 2024 and feature an interview with Agha Mirza, managing director and global head of rates and OTC products at CME Group.

Key Takeaways:

1. November mortgage rate lock activity: Overall lock volume fell 25% MoM, yet stood 12% higher YoY, providing some reason for optimism.
2. Mortgage Rate futures: CME Group has partnered with Optimal Blue to launch Mortgage Rate futures in January 2025 – a game-changer for managing risk across mortgage pipelines, MSRs, and securities.
3. Centralized trading platform: CME Group’s single platform reduces counterparty risk, and the company’s approach to margining and clearing provides advantages to mortgage lenders in terms of liquidity and operational efficiency.

LINKS AND RESOURCES

Optimal Blue:

• Market Advantage mortgage data report | November 2024 data: https://www2.optimalblue.com/wp-content/uploads/2024/12/OB_MarketAdvantage_MortgageDataReport_Nov2024.pdf
• Press release: CME Group to Launch Mortgage Rate Futures: https://www2.optimalblue.com/cme-group-to-launch-mortgage-rate-futures-in-january-2025/
• Subscribe to the Market Advantage mortgage data report: https://www2.optimalblue.com/market-advantage/
• Optimal Blue Summit: summit.optimalblue.com
• Follow Optimal Blue on LinkedIn: https://www.linkedin.com/company/optimal-blue/

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