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

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).