MCT: Mortgage Lock Volume Declines By 13.71% Despite Falling Rates

Jan 19, 2024

News Director

MCT's recent data reveals a drop in mortgage lock volume, with refinances showing only a modest increase despite lower rates, while seasonal trends and purchase market challenges continue.

Mortgage Capital Trading, Inc., MCT, found a 13.71% decrease in mortgage lock volume in December compared to the previous month.

Despite the recent decline in mortgage rates, refinances have seen only a modest uptick, falling short of significantly impacting overall mortgage volume. According to the report, seasonal trends, coupled with challenges in the purchase market, have overshadowed the potential benefits of a full percentage point decrease in rates.

"Softening purchase prices, combined with a further drop in rates, could stimulate both purchases and refinances. However, we anticipate that the purchase market's seasonal lows will persist through Q1," MCT CEO Phil Rasori said.

MCT's Lock Volume Indices offer a snapshot of rate lock volume activity in the residential mortgage industry, segmented by lock type (purchase, rate/term refinance, and cash-out refinance).

Mortgage Rate Locks

Mortgage Capital Trading

About the author

Christine Stuart

News Director

Christine Stuart is the news director at NMP.

Link copied

Published

Jan 19, 2024

Regulation and Compliance

California Approves $25B Homebuyer Loan Program, Targeting New Construction

Proposition 37 could open new purchase lending opportunities, but financing costs and borrower qualification will determine its reach

California voters have approved a $25 billion homebuyer financing initiative that could create new purchase mortgage opportunities for lenders and brokers, particularly those working with homebuilders.Proposition 37, which passed with more than 60% of the vote in the Nov. 3 ...

Opinion

DSCR Lending Keeps Gaining Ground as Investor Purchases Slow

As investor purchases decline, DSCR loans capture a growing share of Non-QM lending, creating opportunities for brokers who understand the differences between lender programs

Real estate investors are buying fewer homes than they did a year ago, yet debt service coverage ratio (DSCR) lending continues to gain ground in the market. A big part of the reason is that DSCR loans are purpose-built for property investors. Agency loans qualify borrowers ...