MCT's November Report Shows 17% Reduction In Mortgage Lock Volume

Less borrowers are locking in mortgage rates as they hover around 8%, despite the fact that another rate increase could be in the cards before the year’s end.

Mortgage Capital Trading’s (MCT) November 2023 Indices Report shows mortgage lock volume dropped by 17.76% over the prior month. 

While the volume of loan originations slowed in October, cash out refinances jumped more than 11% from the previous month, the report indicates. This figure did not impress MCT Head of Trading and Senior Director Andrew Rhodes. 

“Given that cash out refinances are already at notable lows, I don’t believe it to be statistically significant,” Rhodes said.

The Fed paused rates at their meeting last week, indicating however, that the potential for another rate hike is still on the horizon before the new year. 

“Multiple factors such as an 8% mortgage rate, the Fed’s continued fight against inflation, and the industry’s cyclical winter lull, shows we’ll likely continue to see low origination volume heading into the new year,” Rhodes pointed out.