MCT Reports 8% Decrease In Mortgage Lock Volume
Mortgage Capital Trading, Inc. (MCT) found a decrease of 7.84% in mortgage lock volume compared to the previous month. This decline follows a brief uptick in volume at the beginning of the buying season, suggesting a continuing stalemate between limited housing supply and higher interest rates.
The limited supply of available homes coupled with mortgage rates hovering around 7% has contributed to the observed decline in activity for June. As the market navigates these constraints, the mortgage industry anticipates a sideways trend over the next couple of months. Market supply likely peaked at the start of summer, and with rates remaining steady, significant changes in volume are not expected in the near term. June’s economic reports are poised to play a critical role in shaping the Federal Reserve’s actions for the remainder of the year.
As the Federal Reserve continues its efforts to combat inflation, upcoming data releases will be closely scrutinized. Andrew Rhodes, Senior Director and Head of Trading at MCT, emphasized the importance of these indicators, stating, “If the upcoming Nonfarm Payroll Report and Consumer Price Index (CPI) continue to align with predictions, and these economic indicators continue to show progress, we could see one or two rate cuts by the end of the year.”
MCT’s Lock Volume Indices present a snapshot of rate lock volume activity in the residential mortgage industry broken out by lock type (purchase, rate/term refinance, and cash out refinance) across a broad diversity of lenders (e.g., sizes, products/services offered, business models) from MCT’s national footprint.
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