MCT: Mortgage Lock Volume Increases By 20.9% in February

Mortgage Capital Trading, Inc. (MCT), reported a 20.9% surge in mortgage lock volume for February compared to the previous month. The data seems to reflect positive buyer sentiment.

The increase in mortgage lock volume arrives against a backdrop of escalating interest rates, a robust job market, and a Consumer Price Index report that surpassed expectations. Despite these factors, the surge signifies confidence within the mortgage industry.

Looking forward, market watchers anticipate close scrutiny from the Federal Reserve, particularly concerning upcoming non-farm payroll and inflation reports. These data points will play a pivotal role in shaping decisions regarding potential rate adjustments. Andrew Rhodes, senior director and head of Trading at MCT, underscored the significance of these impending reports, emphasizing their potential impact on future Fed meetings.

“The upcoming non-farm payroll and CPI reports will have a significant impact on the decision for the upcoming Fed meeting in terms of forward guidance," Rhodes said. "If we continue to see higher than anticipated job and inflation reports, we could see market expectations start to push rate cuts out to Q3 or later which could act to depress mortgage volume.”

The Fed's next meeting is scheduled for March 20.