Refinance activity continued to recover in the first quarter of 2026, but mortgage servicers retained a smaller share of borrowers despite the stronger lending environment, according to the latest ICE Mortgage Monitor. ICE estimated that roughly 585,000 first-lien refinances totaling $242 billion closed during the quarter, up from a revised 550,000 loans and $234 billion in the fourth quarter of 2025. Refinance volume more than doubled compared with the same period last year and reached its highest quarterly level since early 2022. Refinances accounted for nearly 44% of all mortgage originations in the first quarter, the highest share in four years. Rate-and-term refinances represented 60% of overall refinance activity, marking a five-year high as lower mortgage rates improved borrower incentive. Even with refinance activity gaining momentum, servicer retention weakened during the quarter. ICE reported that servicers retained 32% of refinancing borrowers, down from 35% in the prior quarter. Retention among rate-and-term refinances fell from 42% to 37% . It should certainly be noted that, although retention moved lower in the most recent quarter, overall levels are still the highest in years and that rate/term refis, in particular, have ramped up steadily over the past 3 years.
