MCT Reports That Lock Activity Dropped 10 Percent In November
Mortgage Capital Trading, Inc. (MCT), a mortgage hedge advisory and secondary marketing software firm, reported a 10.7% decrease in mortgage lock volume in November compared to the previous month. This revelation comes as part of MCT’s monthly Lock Volume Indices report, offering valuable insights into the dynamic landscape of the residential mortgage industry.
The data indicates a nuanced pattern, with a slight uptick in lock volume early in the month attributed to a marginal drop in mortgage rates and increased activity from a Mortgage-Backed Securities (MBS) rally. However, this surge was short-lived as volume plateaued and subsequently decreased throughout the remainder of the month, with the Thanksgiving holiday potentially contributing to this trend.
Against the backdrop of these market dynamics, the mortgage industry is hoping for reprieve as The Federal Reserve indicated we may have reached the terminal federal funds rate. Andrew Rhodes, Senior Director and Head of Trading at MCT, commented on the current scenario, saying, “While we’ve seen a decrease in mortgage rates from the highs which would alleviate the seasonal dip, we are still struggling with low supply and see that as a continued trend through the beginning of 2024.”
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