Mortgage lock volume dipped 0.12% in January compared with December, according to Mortgage Capital Trading (MCT), which offers mortgage capital markets technology.
Despite a drop in refinance volume, purchase volume remained steady, resulting in relatively no change in overall production volume month-over-month, MCT says in its latest monthly lock volume report.
The stability in purchase volume continues to support market activity while the industry awaits potential shifts in interest rates.
MCT’s data did show an increase in refinance production in the latter half of January. However, this uptick is likely attributable to the seasonal lull of the holiday period when compared to the end of December.
The outlook for the upcoming Federal Reserve meeting remains uncertain, as additional data is required to refine market predictions.
“Tariffs, if or when implemented, may have an impact on inflation which will have influence over the next Fed decision,” says Andrew Rhodes, senior director and head of trading at MCT, in the report. “This, along with upcoming nonfarm payroll and Consumer Price Index (CPI) reports, will help determine the outlook for mortgage rates heading into the Spring season.”
Photo: Georg Bommeli