Mortgage Capital Trading reports that it witnessed a 28% increase in mortgage lock volume across its trading platform software in February compared with January.
In its monthly volume report, the firm says the increase is in line with typical seasonal patterns: Mortgage lock volume typically rebounds in March, following the winter lull.
MCT says total lock volume may rise further in March and April before tapering-off early-season, as buyers finalize their purchases. This will lead to decreased demand in the deeper summer months.
Looking forward, external economic factors including the potential impact of tariffs and possible retaliatory trade measures could introduce volatility into the broader economy, which may, in turn, affect mortgage rates, the firm says.
“The expectation is that the Federal Reserve will likely hold the line on rates in March and May, with markets anticipating a likely rate cut in June,” says Andrew Rhodes, senior director and head of trading at MCT, in the report. “Economic performance given impending tariffs, nonfarm payroll, and the Consumer Price Index will continue to be the biggest factors influencing rate decisions as we move into the summer months.”
Photo: Artem Beliaikin