Refinance activity continued to recuperate in the first quarter of 2026, but home mortgage servicers retained a smaller sized share of borrowers in spite of the more powerful loaning environment, according to the latest ICE Home mortgage Screen.
ICE approximated that roughly 585,000 first-lien refinances totaling $242 billion closed throughout the quarter, up from a modified 550,000 loans and $234 billion in the fourth quarter of 2025. Refinance volume more than doubled compared to the exact same period last year and reached its greatest quarterly level given that early 2022.
Refinances accounted for nearly 44%of all home mortgage originations in the first quarter, the greatest share in four years. Rate-and-term re-finances represented 60% of general re-finance activity, marking a five-year high as lower mortgage rates improved borrower reward.
Even with refinance activity gaining momentum, servicer retention damaged throughout the quarter. ICE reported that servicers kept 32% of re-financing customers, down from 35% in the previous quarter. Retention among rate-and-term refinances fell from 42% to 37%.
It must definitely be kept in mind that, although retention moved lower in the most current quarter, total levels are still the highest in years and that rate/term refis, in specific, have increase gradually over the previous 3 years.
Under normal market conditions, falling rates and stronger re-finance need tend to support higher retention levels as lenders and servicers strongly target existing consumers with re-finance chances. ICE noted that relationship-driven recapture patterns softened in the very first quarter regardless of increased refinance eligibility and volume.
Unsurprisingly, the re-finance wave remained heavily concentrated amongst more recent home loans (those with the greatest initial rates compared to 2021 and prior). Customers refinancing loans originated in between 2022 and 2025 made up 69% of re-finance activity during the quarter, while the typical rate-and-term customer had actually remained in their previous home loan for simply 19 months. The typical rate-and-term refinancer also reduced their rates of interest by 97 basis points, decreasing monthly payments by an average of $257.