Mortgage lock volume increased 13.96% in December compared with November, according to Mortgage Capital Trading (MCT).
It was the first time since June 2023 that MCT observed a month-over-month increase in total volume, purchase volume, rate/term refinances, and cash-out refinances.
These figures come as the Federal Reserve has decided to maintain interest rates at the current level, with indications that a March rate cut may be unlikely as the Fed persists in its pursuit of achieving 2% inflation.
While the rise in monthly volume across the board is a notable trend, the year-over-year comparison reveals relatively stable total volume.
“The recent decrease in mortgage rates and increase in refinance volume hasn’t yet made a meaningful impact compared to a year ago,” says Phil Rasori, chief operating officer at MCT, in a statement. “However, we anticipate a shift in this scenario as we approach a potential Fed rate cut, unlocking the potential for increased refinance and total volume.”
MCT’s Lock Volume Indices present a snapshot of rate lock volume activity in the residential mortgage industry broken out by lock type (purchase, rate/term refinance, and cash out refinance) across a broad diversity of lenders (e.g., sizes, products/services offered, business models) from MCT’s national footprint.