MCT Reports A 2% Lock Volume Increase Despite Rising Rates
Mortgage Capital Trading, Inc. (MCT),a provider of mortgage capital markets technology, reported a 1.87% increase in mortgage lock volume compared to the previous month.
Amidst an environment of increasing rates, the increase in mortgage lock volume over the previous month illustrates a possible shift in public perception. Potential homebuyers appear to be adapting to the 7% interest rate, viewing it as a new normal. This increase is further supported by the seasonal uptick in real estate activity.
The persistence of housing demand, coupled with a stable market for home values, is instilling confidence among buyers who believe acquiring home equity will compensate for the higher rates.
Andrew Rhodes, Senior Director and Head of Trading at MCT, commented on recent market movements: “The market has rallied a point on the UM30 6’s following the Federal Reserve’s decision to stay the course with interest rates. While the outlook for the summer remains positive, it’s closely tied to forthcoming economic reports. With April nonfarm payroll coming in lower than expected the Federal Reserve is waiting to see if this will become a trend or is just an outlier in terms of strength in jobs. The May CPI report, coming out on the 15th, will be particularly pivotal in determining the market’s expectations in rate cuts sooner or later with some already pricing in cuts in September.”
The Place for Lending Visionaries and Thought Leaders. We take you beyond the latest news and trends to help you grow your lending business.
