Mortgage lock volume decreased 7.84% in June compared with May, according to Mortgage Capital Trading, Inc.
The decline follows a brief uptick in volume at the beginning of the buying season, suggesting a continuing stalemate between limited housing supply and higher interest rates.
Limited supply of available homes coupled with mortgage rates hovering around 7% has contributed to a decline in sales activity, MCT says. As the market navigates these constraints, the mortgage industry anticipates a sideways trend over the next couple of months.
Market supply likely peaked at the start of summer, and with rates remaining steady, significant changes in volume are not expected in the near term, the secondary marketing software and services firm says in a release.
June’s economic reports are poised to play a critical role in shaping the Federal Reserve’s actions for the remainder of the year, the company says. As the Federal Reserve continues its efforts to combat inflation, upcoming data releases will be closely scrutinized.
Andrew Rhodes, senior director and head of trading at MCT, says “if the upcoming Nonfarm Payroll Report and Consumer Price Index (CPI) continue to align with predictions, and these economic indicators continue to show progress, we could see one or two rate cuts by the end of the year.”