MCT Says Seasonal Lows Contribute To Drop In Mortgage Volume
Mortgage Capital Trading, Inc. (MCT), a mortgage hedge advisory and secondary marketing software firm, revealed a 13.71% decline in mortgage lock volume compared to the previous month.
Despite a recent drop in mortgage rates, refinances have witnessed only a modest uptick, falling short of making a significant impact on overall mortgage volume. Seasonal trends, coupled with challenges in the purchase market, have eclipsed the potential benefits of a full percentage point decrease in rates.
Phil Rasori, Chief Operating Officer at MCT, commented on the current landscape, stating, “Softening purchase prices, paired with a further drop in rates, could boost purchases and refinances. However, we anticipate that seasonal lows in the purchase market will persist through Q1.”
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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