Mortgage Lock Volume Drops as Rates Stabilize

Mortgage rate locks plummeted 15.12% this month, as reported by Mortgage Capital Trading Inc. (MCT).

After a consistent rise in mortgage lock volume over the last three months, a drastic change took place due to stabilizing, albeit high, interest rates post-election. However, volatility concerns remain as the winter months approach with a new presidential administration taking office in January. 

Andrew Rhodes, Senior Director and Head of Trading at MCT, noted the industry's outlook: “Most lenders have already priced in at least one rate cut in either December or January. Barring unforeseen events, mortgage rates are predicted to remain relatively steady through the winter months.” This forecast suggests that mortgage volume will remain subdued through early 2025, with refinance activity particularly impacted.

Concerns about market volatility continue to weigh on the industry. MCT forecasts that mortgage rates will hold steady or rise slightly, further suppressing refinance activity.