Mortgage lock volume plummeted 15% in November compared with October, as rates increased, according to Mortgage Capital Trading (MCT).
While the market exhibited relative stability post-election, a clear downtrend in refinance activity was observed as interest rates settled. Heading into the winter months and with a new presidential administration taking office in January, volatility concerns remain a focal point for the industry. Current expectations suggest that mortgage volume will stay low through the early months of the year, the mortgage capital markets technology.firm says in its monthly report.
“Most lenders have already priced in at least one rate cut in either December or January,” says Andrew Rhodes, senior director and head of trading at MCT. “Barring unforeseen events, mortgage rates are predicted to remain relatively steady through the winter months.”
Industry forecasts indicate that rates are likely to hold or increase slightly, further dampening refinance activity. With the evolving market landscape, industry professionals are encouraged to stay informed of potential shifts in the coming months.
Photo: Georg Bommeli