Mortgage lock volume increased 1.87% in April compared with March, according to Mortgage Capital Trading, which offers mortgage capital markets technology.
Amidst an environment of increasing rates, the increase in mortgage lock volume over the previous month illustrates a possible shift in public perception. Potential homebuyers appear to be adapting to the 7% interest rate, viewing it as a new normal.
This increase is further supported by the seasonal uptick in real estate activity, MCT says in a release.
The persistence of housing demand, coupled with a stable market for home values, is instilling confidence among buyers who believe acquiring home equity will compensate for the higher rates.
“The market has rallied a point on the UM30 6’s following the Federal Reserve’s decision to stay the course with interest rates,” says Andrew Rhodes, senior director and head of trading at MCT.
“While the outlook for the summer remains positive, it is closely tied to forthcoming economic reports. With April non-farm payroll coming in lower than expected the Federal Reserve is waiting to see if this will become a trend or is just an outlier in terms of strength in jobs. The May CPI report, coming out on the 15th, will be particularly pivotal in determining the market’s expectations in rate cuts sooner or later with some already pricing in cuts in September.”
Photo: Georg Bommeli