Press Release - Ardley’s Q2 2025 Mortgage Market Insights report

FOR IMMEDIATE RELEASE

Borrowers React to Rate Drops Within Days as Q2 "Boomlet" Drives 500% Surge in Rate-and-Term Eligibility

New Ardley Technologies data shows rapid borrower response to rate movements and emerging equity extraction patterns

Reston, V.A. - Aug. 5, 2025 — A brief 20-day rate drop from late March through mid-May triggered a dramatic refinance surge that drove rate-and-term eligibility up 5x and sent applications soaring 3x in April alone, according to Ardley Technologies' Q2 2025 Mortgage Market Insights Report.

These findings, drawn from borrower behavior and loan data representing 13% of all U.S. mortgages, demonstrate how quickly market dynamics can shift, and underscore the need for lenders to have real-time insights to capitalize on short-lived opportunities.

"This quarter proved that borrowers respond to rate movements within days, not weeks," said Nathan Den Herder, Founder & CEO at Ardley Technologies. "While overall rate and term eligibility was cut in half from Q1 to Q2, that brief April window drove 56% of all first-lien applications. Speed and precision are no longer mere advantages—they're now essential."

Key findings from Ardley's Q2 2025 Mortgage Market Insights report include:

Immediate borrower response: Rate-and-term applications surged despite shrinking overall eligibility, with 56% of all first-lien applications in Q2 being rate and term refinances, up from 22% in Q1

COVID-era borrowers staying put: Borrowers with pandemic-era rates averaging 3.98% are largely avoiding refinancing, instead tapping equity through second liens

Growing equity extraction: Average cash withdrawn from second mortgage applications climbed from $60,000 in Q1 to $70,000 in Q2

Purchase market improving: Purchase opportunities grew 2.4x in June compared to April and May, with 0.74% of monitored properties listed on MLS

The report also reveals that while second liens continue to dominate at 95% of production, the brief rate improvement pulled enough volume toward first mortgages to shift the overall application mix. Most tellingly, borrowers applying for refinances had loans averaging 5.09 years old—missing the ultra-low rates of the pandemic era.

"We're seeing a tale of two borrower segments," said Haley Rader, Head of Product at Ardley. "COVID-era borrowers are sitting tight and extracting equity. Everyone else jumps at the first sign of rate relief. The Fed's projected 50 basis point drop could double rate and term eligibility overnight—lenders need tools that surface these opportunities the moment they appear."

The data underscores a critical reality for lenders: in today's volatile rate environment, broad portfolio averages aren't enough. Success requires borrower-level eligibility insights that can identify and act on rapidly shifting opportunities.

To download a copy of Ardley's Q2 2025 Mortgage Market Insights Report:

 Ardley Q2 2025 Mortgage Market Insights Report

About Ardley Technologies, Inc.

Ardley is an enterprise-class software platform that removes friction for mortgage servicers, originators, and borrowers. Ardley Advantage identifies, structures, and delivers loan offers directly to borrowers via Navigator (borrower-driven loans) and Autopilot (automatic underwriting). Ardley Intelligence surfaces real-time borrower eligibility based on precise pricing and LLPAs, not broad portfolio averages. Our products are reactive to all rate cycles, offering scalable, API-led integrations. For more information, please visit ardley.com.

Media Contact:

Taylor Potter, COO
(918) 338-6440
taylor.potter@ardley.com
www.ardley.com