Mortgage Capital Trading, which offers mortgage capital markets technology, reports a 16.7% decrease in mortgage lock volume in December compared with November.
While there was a slight uptick in refinance production, it was not enough to significantly
impact overall production levels, the firm says.
The majority of December’s mortgage activity stemmed from purchase volume, reflecting a consistent trend in the current housing market.
“The Fed is expected to hold rates steady for longer as we continue to see a strong jobs market coupled with lowering inflation,” says Andrew Rhodes, senior director and head of trading at MCT. “As we move into 2025, nonfarm payroll and the Consumer Price Index (CPI) will continue to be critical data points providing insight into any potential rate cuts. However, the more immediate focus is on the incoming administration policy changes and their effect on the market.”
The market is currently pricing in an expectation of higher mortgage rates for a longer period, influenced by stronger-than-expected nonfarm payroll numbers and the conservative nature of the Federal Reserve’s dot plot projections, MCT says.
Photo: Artem Beliaikin