MCT: Rate Lock Volume Fell in December Despite Lower Rates


Mortgage rate lock volume decreased 13.71% in December compared with November, according to Mortgage Capital Trading Inc.

The decrease comes despite a recent drop in mortgage rates.

Refinances saw a modest uptick for the month, but this failed to make a significant impact on overall mortgage volume.

Seasonal trends, coupled with challenges in the purchase market, have eclipsed the potential benefits of a full percentage point decrease in rates, the firm says in its Lock Volume Indices report.

“Softening purchase prices, paired with a further drop in rates, could boost purchases and refinances,” says Phil Rasori, chief operating officer at MCT, in a statement. “However, we anticipate that seasonal lows in the purchase market will persist through Q1.”

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.

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