In February, the effective cost of warehouse edged down 0.05%, while average overnight SOFR held steady. The effective spread to SOFR narrowed slightly, and average note rates dipped to 6.14% as pricing conditions eased. Warehouse carry declined to 0.02%, and average dwell time shortened by two days, offering modest efficiency gains. Net warehouse spread per loan fell to $3.31, highlighting the continued pressure on profitability even amid incremental improvements.
Warehouse Lending Trends (Month to Month) |
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| January 2026 | February 2026 | |
| Effective Cost of Warehouse | 6.17% | 6.12% (-0.05%) |
| Average Overnight SOFR | 3.67% | 3.67%(+/-0.00%) |
| Effective Spread to Overnight SOFR | 2.50% | 2.45% (-0.05%) |
| Average Note Rate | 6.25% | 6.14% (-0.11%) |
| Warehouse Carry | 0.08% | 0.02%(-0.06%) |
| Average Dwell Time | 19 days | 19 days (-2 days) |
| Net Warehouse Spread (per loan) |
$14.78 |
$3.31 (-$11.47) |
The Fed’s decision to hold rates steady in January kept the federal funds rate at 3.5% to 3.75%, helping mortgage markets settle after prolonged volatility. Thirty‑year fixed rates remained in the low‑6% range in February, supported by easing inflation, softer labor data, and fluctuating Treasury yields. Analysts largely expect the Fed to hold rates again at the March 17-18 meeting, though upcoming CPI data may influence the tone of the meeting.
In a market where efficiency is now as critical as margins, lenders and originators increasingly rely on deeper collaboration to keep pipelines moving. True performance gains come not only from automation, but from connecting the stakeholders who matter most within a unified ecosystem. By bringing Genesis and Greyhound together, OptiFunder enables a synchronized flow of data, decisions, and funding actions that eliminates delays and reduces manual effort across the board. This integrated approach strengthens relationships, accelerates cycle times, and ensures every participant in the funding process benefits from greater visibility and precision.
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