Skip to main content

Rate Lock Volume Continues To Drop

Oct 06, 2022
Rate Lock
Staff Writer

Year-over-year total lock volume falls by nearly 50%

KEY TAKEAWAYS
  • MCT’s rate lock activity indices are based on actual locked loan volume, not applications.
  • Total mortgage rate locks by dollar volume fell 5.4% month-over-month in September.

Mortgage lock volumes continue to drop when compared to the summer of 2021, according to MCT.

MCT Lock Volume Indices

The company found that overall lock volumes were down 48.5% year-over-year. However, both the month-over-month rate/term refinance locks were up 33% and the purchase index was up 6.3% in September. 

Total mortgage rate locks by dollar volume fell 5.4% month-over-month in September. Cash out refinances are down 10.7% month-over-month and from one year ago volume is down 80.6%, while rate/term refinance volume dropped 92.9% from 2021. Loan sizes were up 8.3% over the past year, with the average loan amount increasing $292,000 to $31,000. 

MCT, provider of capital markets software and services, said it represents a balanced cross section of several hundred lenders among retail, correspondent, wholesale, and consumer direct channels. The Lock Volume Indices is broken out by transaction type: purchase, rate/term refinance, and cash out refinance.

Lock Volume for September 2022

MCT’s rate lock activity indices are based on actual dollar volume of locked loans, not number of applications. Especially in a tight purchase market, MCT relieves its methodology of using actual loans locked versus applications as a more reliable metric. There is a higher likelihood of having multiple applications per funded loan, and prequels do not convert at as high of a rate in the current market as has historically been the case — especially when applications are counted at the early stage of entering a property address. 

About the author
Staff Writer
Katie Jensen is a staff writer at NMP.
Published
Oct 06, 2022
Rate Lock Volume Jumps More Than 15% In March

Broader economic uncertainty makes for a challenging 2024, MCT's head of trading says.

Apr 12, 2024
Monthly Housing Payments Set New Record Highs

Redfin says buyers’ costs will likely stay high due to inflation news.

Apr 12, 2024
Mortgage Rates Hold Near 7%

The 30-year fixed-rate mortgage averaged 6.88% as of April 11.

Apr 12, 2024
Lower Interest Rates Do Not Always Help Affordability

Housing affordability also depends on house prices, which have competing effects.

Apr 11, 2024
U.S. Foreclosure Activity Up 3% From Last Quarter

ATTOM reported a total of 95,349 U.S. properties with a foreclosure filings during the first quarter of 2024

Apr 11, 2024
Shelter Costs, Gas Drive Up Inflation In March

The runway to rate cuts continues to lengthen with month-over-month inflation growth in March.

Apr 10, 2024