Despite market volatility, mortgage lock volume increased 2.5% in October compared with September, according to Mortgage Capital Trading (MCT), which offers mortgage capital markets technology.
October proved to be a dynamic month for the mortgage market, the firm says in its monthly report. An increase in mortgage rates, spurred by election volatility, led to a reversal of the refinancing uptick observed in September.
However, a rise in purchase volume during the month managed to counterbalance the decline in refinancing, resulting in overall month-over-month lock volume remaining relatively flat.
The uncertainty surrounding the elections caused temporary market disruptions and a downturn in markets, which has now eased following the decisive election results. This change has brought a level of stability and clarity to the market.
“With the election and last Thursday’s Federal Reserve meeting behind us, we anticipate markets will stabilize with the new focus on November jobs and CPI data points,” says Andrew Rhodes, senior director and head of trading at MCT, in a release.